Egyptian expats’ remittances jumped to an unprecedented rate of 13.2 percent in FY 2020/2021 to post $31.4 billion, up from $27.8 billion in FY 2019/2020, the Central Bank of Egypt (CBE) announced on Wednesday.

CBE data showed that Egyptian expats’ remittances edged up by 29.6 percent from April to June 2021 to record $8.1 billion, up from $6.2 billion in the same period of 2020.

Moreover, Egyptian expats remittances rose by an annual rate of 15.5 percent in June to reach $2.9 billion, up from $2.6 billion in June 2020, according to CBE.

 In June, the Central Agency for Public Mobilisation and Statistics (CAPMAS) said that Egyptian expats' remittances posted $250.3 billion from FY 2011/2012 through FY 2019/2020.

The figure accounts for 31.7 percent of Egypt’s net international reserves.

During that period, remittances fluctuated, recording a high of $27.8 billion in FY 2019/2020 and a low of $12.6 billion in FY 2010/2011, according to CAPMAS.

Egyptian expats' remittances registered an 8.5 percent increase from July 2020 to March 2021, to reach $23.4 billion, up from $21.5 billion in the same period of 2020, the CBE said in June.

Remittances are essential for the recovery from the aftermath of the pandemic in developing countries, a recent report by the World Economic Forum said.

“The money the expats send across the world’s borders have helped smooth the economic shocks from the pandemic, fostering stronger resilience and recovery in their home nations throughout 2020, and into 2021 and beyond, than would have been the case without these flows,” the report explained.

It added that the remittance multiplier effect boosts local economic activity and ultimately the gross domestic production.