The important of remittances for Egypt?

Mohsen El-Sayed

February 12, 2023

Remittances are a vital source of income for Egypt, with millions of Egyptians working abroad and sending money home to support their families and communities. According to the World Bank, remittances to Egypt reached $26 billion in 2019, making it one of the top recipient countries in the world.

Remittances play a critical role in Egypt's economy, providing a stable source of foreign exchange and supporting the country's balance of payments. They also contribute to economic growth and poverty reduction, helping to improve the standard of living for millions of Egyptians.

Remittances also have a positive impact on the social and economic development of the country, they help to improve access to education, healthcare and other basic services. Additionally, they also help to promote entrepreneurship and small business development.

The Egyptian government has also recognized the importance of remittances and has taken steps to make it easier for Egyptians working abroad to send money home. For example, the government has implemented new regulations to reduce the cost of remittances and has also established a national database to track remittance flows.

In addition, The Central Bank of Egypt (CBE) has also launched a number of initiatives to promote the use of formal channels for remittances and to reduce the costs of remittance services. The CBE has also established a national remittance center to provide remittance services to the Egyptian market.

However, it's important to note that remittances alone cannot solve all the economic problems of Egypt, it's important for governments and policymakers to take a comprehensive approach to managing the impact of remittances on the economy.

In conclusion, remittances play a critical role in Egypt's economy and society, providing a stable source of foreign exchange, supporting economic growth and poverty reduction, and improving access to basic services. The Egyptian government has taken steps to make it easier for Egyptians working abroad to send money home, but it's important for policymakers to take a comprehensive approach to managing the impact of remittances on the economy.

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The above article is providing an overview of the importance of remittances for Egypt, it's mentioning how remittances play a critical role in Egypt's economy, providing a stable source of foreign exchange, supporting economic growth and poverty reduction, and improving access to basic services. The article is also mentioning the efforts made.