IBAG partners with Banque Du Caire to increase Egyptian expats’ remittances

According to the announcement, this partnership aims to attract new customers from many social segments to support the financial inclusion initiative and diversify sources of foreign currency within the banking sector.

Chairman and CEO of Banque Du Caire Tarek Fayed explained that the launch of Western Union’s services through the bank’s branches aligns with the continuous efforts to increase the transfers from Egyptians working abroad.

Fayed highlighted that this aligns with the Central Bank of Egypt (CBE) integrating the informal money transfer sector within the banking sector and enhancing financial inclusion.

He added that it is a step towards increasing foreign cash inflows that reflects positively on Egypt’s economy.

Executive Chairman of IBAG Moustapha Sarhank stressed that IBAG’s strategy agrees with the CBE’s vision to support and advance the Egyptian economy, which is the reason for the partnership with Banque Du Caire.

Chief Executive Officer of IBAG Abd Allah El Sada also said that the scope of services offered by this partnership will be expanded to include new geographical areas, which is expected to increase dollar collections in banks from Egyptians abroad.

It is also worth noting that Banque Du Caire joined the shareholders of IBAG in September 2022, buying shares from Al Ahly Capital Holding Company, the investment arm of the National Bank of Egypt, and Banque Misr, gaining a 10 percent share in the company.

Egyptian expats' remittance inflows increased from $1.6 billion in May 2023 to $2.7 billion in May 2024, with an increase of 73.8 percent year-on-year.

The rise is due to the devaluation of the Egyptian pound against the US dollar four times since 2022, with the most recent in March 2024, when the EGP lost more than 60 percent of its value. This led to the unification of the official exchange and the black-market rates.