The Central Bank of Egypt (CBE) reported that remittances from Egyptians working abroad reached $23.7bn during the period from January to October 2024, representing a 45.3% increase compared to $16.3bn during the same period in 2023. This significant growth is largely attributed to the economic reforms implemented in March 2024. In a statement released on Tuesday, the CBE noted that remittances saw successive increases following these reforms. In October 2024 alone, remittances surged by 68.4%, reaching approximately $2.9bn, up from around $1.7bn in October 2023. The bank further reported that between July and October 2024, remittances increased by 80.0%, totaling about $11.2bn, compared to $6.2bn during the same months in 2023. Remittances from Egyptians abroad continue to be one of Egypt's most important sources of foreign currency. Despite a decline in remittances during the 2022/2023 period, falling to $22.1bn from a peak of $31.9bn in 2021/2022, the figures have rebounded this year. Contributing factors to the decline in previous years included the global COVID-19 pandemic, which disrupted businesses worldwide, as well as issues related to exchange rates and the parallel dollar market. The Russian-Ukrainian war also added to the uncertainty. However, with the exchange rate liberalization and the increase in interest rates on the Egyptian pound and dollar savings instruments in March 2024, remittances began to flow back into the formal banking system. This change contributed significantly to the sharp rise in remittances in 2024. Notably, Egypt has climbed from sixth to fifth place globally in the rankings of the top remittance-receiving countries, following India, Mexico, China, and the Philippines. These developments underscore the importance of remittances in Egypt's economy and highlight the positive impact of recent economic reforms in boosting foreign currency inflows.
