For the third month in a row, remittances from Egyptians residing outside have increased, climbing by 26.6 percent to reach $2.7 billion in May.
Data from the Central Bank of Egypt indicates that this is an increase of 73.8 percent year over year, from $1.6 billion.
Furthermore, the economic reform measures that were implemented on March 6—including a currency devaluation of almost 35 percent in reaction to a substantial interest rate hike—led to a $2.2 billion monthly increase from the April number.
This coincided with the International Monetary Fund’s projection that Egypt’s foreign cash receipts would climb by 14.6 percent to $13.7 billion this year from five major sources.
It is projected that net private transfers from overseas will rise to approximately $23.1 billion in 2023–2024, a 5.5% increase from $21.9 billion in 2022–2023. According to the forecasts, these transfers will reach $24.6 billion in 2024–2025.
This expected expansion is mostly the result of a historic deal that the United Arab Emirates, acting through a private group headed by the Abu Dhabi-based sovereign investment firm ADQ, struck in February. The deal described the single largest foreign direct investment in Egypt to date, a $35 billion investment in Ras El-Hekma, a region on the Mediterranean coast 350 km northwest of Cairo.
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