RIYADH: Egypt remittances dropped 14.7 percent in July compared to the same period last year, coming in at $2.38 billion, according to the Central Bank of Egypt data.
Remittances from Egyptians working abroad are one of the most important sources of foreign exchange for the country, along with tourism, the Suez Canal, and exports.
The drop comes as the exchange rate of the Egyptian pound is seeing a decline in light of the pressures the country is experiencing due to the Ukrainian war repercussions and the decline in foreign reserves at the Central Bank.
The July drop came after the money transferred back to Egypt from individuals working abroad reached the highest level in its history during the fiscal year 2021-2022, reaching $32 billion, according to the country’s central bank.
Even across the first 7 months of 2022, remittances increased by $22.6 million to record about $18.72 billion, compared to about $18.69 billion during the same period in 2021.
Expatriate remittances have increased since Egypt liberalized its currency exchange rate in November 2016 as part of economic reforms.