The impact of the change in the dollar exchange rate in Egypt on the volume of remittances of Egyptians working abroad in the period from 2011 to 2021
64th ISI World Statistics Congress - Ottawa, Canada
Format: CPS Abstract
Session: CPS 11 - Finance and business statistics VII
Monday 17 July 4 p.m. - 5:25 p.m. (Canada/Eastern)
The transfers of Egyptians working abroad witnessed a remarkable development during the past 5 years, as they represent an important source of foreign exchange in Egypt. Especially in light of the economic crisis the world is going through and the decline in tourism movement as a result of the Russian-Ukrainian war and the high levels of inflation. Egypt is the largest recipient of remittances in the region and one of the top 5 recipients of remittances in the world, has benefited from higher oil prices and remittances from Egyptians working in the Gulf states, as well as strong economic activity in Europe and the United States, according to the World Bank report.
At the beginning of this November, the Central Bank of Egypt announced that net international reserves amounted to 33.411 billion US dollars at the end of October 2022, an increase of about 213 million dollars on a monthly basis.
Due to the scarcity of the dollar, the Central Bank of Egypt announced several measures during the extraordinary meeting it held during the last week of last month. During the meeting, it was decided to start implementing the policy of orbital floating of the Egyptian pound, which caused the Egyptian pound to lose about 55.8% of its price against the US dollar.
This paper highlights on the study of the change in the dollar exchange rate in Egypt on the volume of remittances of Egyptians working abroad in the period from 2011 to 2021. Data were obtained from the central bank of Egypt. The analytical approach was applied using Dynamic regression analysis to measure the effect of the dollar exchange rate in Egypt on the volume of remittances of Egyptians working abroad in the period from 2011 to 2021 through SPSS package.
Keywords: Foreign exchange, World Bank, Central bank, Inflation