RIYADH: Egyptians working abroad sent around $2.6 billion in remittances in November, a 65.4 percent annual increase, according to official data.
The nation’s central bank stated that the surge reflects the impact of economic reform measures implemented in March, including fully floating the Egyptian pound, therefore allowing its value to be determined by market forces.
This move was part of an agreement with the International Monetary Fund to secure an $8 billion loan aimed at stabilizing the economy.
Following the flotation, the pound’s value decreased significantly, leading to increased prices for imported goods and contributing to higher inflation rates.
The sharp decline in the pound’s value and rising inflation have driven more Egyptians to seek opportunities abroad, aiming to earn in stronger foreign currencies and mitigate the impact of economic instability at home.
Between July and November, remittance inflows increased by 77 percent year-on-year, totaling around $13.8 billion, up from $7.8 billion during the same period last year, according to the Central Bank of Egypt.
From January last year to November, the total money sent back to the country from expats saw an annual increase of 47.1 percent to about $26.3 billion.
The steady growth in remittances is a key factor in supporting Egypt’s foreign currency reserves — which saw notable gains last year — and stabilizing the economy amid ongoing fiscal and monetary adjustments.
Egypt’s net international reserves have also seen consistent growth alongside rising inflows from Egyptians working abroad.
The CBE announced that NIRs increased by $157 million in December, reaching a record high of $47.1 billion.
This marks a continuation of steady monthly gains, with reserves rising from $46.94 billion in October to $46.95 billion in November. On a year-on-year basis, Egypt’s foreign exchange reserves grew by $11.9 billion in 2024, up from $35.22 billion in December 2023.
The number of Egyptians living abroad varies between 12 million to 14 million according to a range of reports, with the highest number of expats in the Gulf Cooperation Council.
In the fiscal year 2023/24, Egypt achieved a primary budget surplus of 6.1 percent of its gross domestic product, indicating that revenues exceeded expenditures before accounting for interest payments.
However, after including interest obligations, the country faced an overall budget deficit of 3.6 percent of GDP. This highlights the significant burden of Egypt’s debt servicing on its primary budget.
