CAIRO — Remittances, a key source of hard currency in Egypt, are plummeting as the country faces great economic uncertainty and Egyptians abroad seek alternative ways to send money home.

During the first half of the 2022/2023 fiscal year, which falls in the second half of 2022, these transfers fell by 23% to $12 billion compared to $15.6 billion a year earlier, according to recent data from the Central Bank of Egypt. It was the lowest level the country had recorded since the first half of fiscal year 2016/2017, when remittances stood at $10 billion.

Egypt is the world’s fifth largest recipient of remittances, mainly sent by workers in the Gulf, and in 2021/2022 these inflows hit an all-time high of $31.9 billion, more than revenues from the Suez Canal and tourism combined ($17.7 billion), CBE data shows.

“Egypt has been the largest beneficiary of remittances in the MENA region for several years,” Kevin Graham, editorial manager at research firm Oxford Business Group, told Al-Monitor. “Remittances have been a critical pillar of Egypt’s economy,” he added.