Egypt’s FX up 200%, remittances double – CBE

A senior source at the Central Bank of Egypt (CBE) revealed that foreign exchange inflows increased by 200 per cent since the liberalisation of the currency at the end of March 2024.

The source pointed out that these inflows include a rise of more than 100 per cent in remittances by Egyptian expatriates compared to pre-flotation levels.

The decision to regulate the foreign exchange market has resulted in several positive outcomes, primarily a significant improvement in the net foreign assets held by the CBE, which recorded a surplus of $10.3 billion in June 2024, up from a negative $11.4 billion in January 2024.

Additionally, the net foreign assets held by the banks also saw a remarkable improvement, recording $4.6 billion in May 2024, up from a negative $17.6 billion.

The source further noted that the strong return of foreign exchange inflows contributed to a remarkable surge in the country’s net international reserves reaching an all-time high of $46.38 billion in June 2024, an increase of $13.26 billion from August 2022.

The current reserve balances can cover approximately 7.9 months of the country’s commodity imports, significantly exceeding the internationally recognised safe levels.

Attribution: Amwal Al Ghad English