The central bank revealed in Egypt Remittances from Egyptians abroad fell by 26.1%, indicating that the current account deficit narrowed to 5.3 billion. dollar In the period from July 2022 to March 2023.
The Central Bank of Egypt said in a statement on Tuesday that remittances from Egyptians abroad fell to $17.5 billion from $23.6 billion in the same period a year earlier.
Decline in foreign remittances coincides with depreciation grind The Egyptian currency, which lost about half of its value against the US dollar, while media attributed the reason for the drop to the large number of Egyptians abroad resorting to the unofficial market to send remittances.
The CBE statement said the current account deficit fell to $5.3 billion between July 2022 and March, from $13.6 billion in the same period last year, after seeing an increase in tourism revenue and Suez Canal fees.
He added, “The current account posted a surplus for the first time in years in the second quarter of the fiscal year ending in June,” indicating a decline in imports and an increase in exports.
The Central Bank of Egypt reported tourism revenue was $10.3 billion, up 25.7 percent from the same period last year, while Suez Canal traffic fee revenue was $6.2 billion, up from $5.1 billion in the same period last year.
The Central Bank of Egypt referred to “an increase in the net inflow of foreign direct investment into Egypt, registering about $7.9 billion, compared to about $7.3 billion” during the same period of the previous financial year.
The Egyptian regime’s government has sold shares of state assets worth $1.9 billion, under the guise of mitigating the impact of the foreign currency crisis, which has driven the inflation rate to a record high.
Dollar savings certificates
In parallel with the exacerbation of the dollar crisis in Egypt, the National Bank and Banque Misr announced the issue of two new cash certificates in US dollars for a period of three years.
The National Bank said it had issued two new cash certificates in US dollars for a period of three years, the first bearing the name “Al-Ahly Plus” with an annual rate of return of 7%, while the second bears the name “Al-Ahly Immediately” with an annual rate of return of 9%.
The “National Bank” said that the “Al-Ahly Plus” certificate is disbursed quarterly in the same currency, and it is also allowed to borrow with its collateral up to 50% of its value in Egyptian pounds for investment purposes, with a maximum of 10 million pounds and a rate of return of 2.25% (lower than the Central Bank lending rate).
And he indicated that the “Al-Ahly Immediately” certificate is paid in advance its annual return price in equivalent in Egyptian pounds for the entire period at the rate of 27% of the value of the certificate for the entire duration of the certificate.
As for the Banque Misr cash certificates, they bore the names “Al-Qimma” and “Elite”, and they contain the same elements as the certificates advertised by the “National Bank”.
According to the announcement of the two largest banks in Egypt, the categories of certificates amount to 1,000 US dollars and its multiples, and the return is calculated from the business day following the day of purchase, and the certificates can be redeemed after 6 months from the date of purchase.