Egyptian Expats Sent 20% More Money Home After Pound's Flotation

(Bloomberg) -- Egyptian workers abroad sent 20 percent more money home following the flotation of the pound, a sign of growing confidence in the North African country's new currency regime.

Expatriates remitted about $5 billion from Nov. 3 through the end of January, compared to $4.1 billion in the same period last year, the Central Bank of Egypt said in an emailed statement Monday. In January, transfers increased 23 percent to $1.6 billion.

Foreign currency receipts have grown gradually since Egypt removed restrictions on its pound four months ago, paving the way to a $12 billion loan from the International Monetary Fund. Foreign investors have boosted holdings in Egyptian debt and stocks, while dollars Egyptians traded in the black market have returned to the banking system.

The pound has lost more than 45 percent of its value since the flotation, trading around 16.55 per dollar at 1:38 p.m. in Cairo. Stocks, meanwhile, have rallied, with the benchmark EGX30 index gaining 48 percent in local currency terms.

To contact the reporter on this story: Ahmed Feteha in Cairo at afeteha@bloomberg.net.

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Amy Teibel, Stuart Biggs