Egyptian expats remittances grew by 10.5 percent during 2020 to reach $29.6 billion, up from $26.8 percent in 2019, the Central Bank of Egypt (CBE) announced on Monday.

The CBE said that the remittances increased to $7.5 billion from October to December 2020, up from $7 billion in the same period of 2019.

In February, the CBE revealed that remittances reached $27.1 billion from January to November 2020, up from $24.2 billion a year prior, an increase of 11.9 percent.

Egypt’s net international reserves (NIRs) rose for the ninth month in a row to reach $40.2 billion by end of February, up from $40.1 billion in January, according to the CBE.

Egypt’s account deficit is expected to see a marginal widening in FY2021/2022 amid the ongoing COVID-19 crisis, according to Fitch Ratings.

Fitch expects remittances and tourism receipt inflows to Egypt to drop, as the full impact of the pandemic shock crystallises in the current FY2020/2021, which ends in June.

In March, Fitch affirmed Egypt’s long-term foreign currency issuer default rating at B+ with a stable outlook.

Remittance flows to low and middle-income countries were projected to drop by 7 percent to reach $508 billion in 2020, followed by a further decline of 7.5 percent, to post $470 billion in 2021, driven by the global pandemic, according to the World Bank.

The expected decline is driven by the weak economic growth and employment levels in migrant-hosting countries, weak oil prices, and depreciation of the currencies of remittance-source countries against the US dollar, according to the World Bank.