CAIRO: Egyptians abroad sent $22.1 billion back home in remittances between January and September this year, a year-on-year increase of 11.6 percent, according to data from the Central Bank of Egypt.
Remittances sent home by Egyptians living abroad have risen since the Arab world’s most populous country liberalized its currency exchange rate in November 2016 as part of economic reforms linked to a $12-billion loan from the International Monetary Fund.
The amount sent home by Egypt’s citizens living abroad contributes significantly to the country’s cash reserves, especially at a time when it most needs it.
According to the central bank, between March and May, Egypt’s cash reserves began to decline as investors withdrew liquidity from emerging markets and the tourism sector suffered greatly due to the coronavirus disease (COVID-19).
Over the course of the three months, Egypt’s foreign-exchange reserves declined by about $9.4 billion, but on Sunday the central bank announced that reserves had begun to stabilize in June and now stood at $39.22 billion.