The effects of digital transfers on Egypt’s economy

The effects of digital transfers on Egypt’s economy

Remittances are a crucial source of income and foreign currency in Egypt, often serving as the only financial safety net for low-income households. They provide a much-needed influx of cash to cover necessities such as food, housing, and healthcare. Remittances, which represent billions of dollars, play a pivotal role in supporting the national economy at both the macroeconomic and microeconomic levels. They not only enable families to cover their basic needs such as healthcare and education, but also facilitate access to the real estate market and various investment opportunities. Moreover, remittances contribute to the balance of payments and help to boost foreign exchange reserves. In tandem, transparency is an essential component of successful cross-border payments. The frictional pain point associated with payments, including exorbitant fees and disagreeable user experience, is now further exacerbated by the lack of openness in this sector. Poor visibility into the costs and complexities of the payment process leads to a lack of understanding of the associated fees, resulting in higher costs and a less than satisfactory user experience. As such, it is critical that banks today strive to increase transparency in order to improve the overall state of cross-border payments. This year’s International Day of