The Central Bank of Egypt communicated this decision in a letter to banks (…): "Starting February 10, the Central Bank of Egyptwill allow individual Egyptians who remit money to an Egyptian bank to have the right to repatriate the same value outside Egypt, to the same person who made the transfer. This will be allowed after the individual liquidates, wholly or in part, an investment made in Egypt using the original remittance. (…)
CBE has raised the interest rate payable on savings in local currency to 12.5%, which is another measure intended to increase remittance flows. Remittances to Egypt reached USD 19 billion in 2012, compared with USD 14.3 billion in 2011, according to central bank data.(...)
"Egyptians abroad are cautious about investing in Egypt due to the political situation. This decision will encourage them to invest their money at home in the medium term, as well as increase the legitimate inflows of US dollars into the Egyptian banking system," (...).
Egyptians abroad prefer to invest in real estate, gold and bank deposits, which are considered low-risk investments. "The decision will also have a positive impact on the real estate market inEgypt, which has seen tough times over the past two years," Dr. Abdullah said.(....)