The volume of money transfers from the UAE to Egypt surged following the decision to float the Egyptian pound by the Egyptian central bank.

Al Ansari Exchange, which is listed on Dubai Financial Market (DFM), said it had witnessed a ‘remarkable increase’ in the volume of transfers, although did not specify actual volumes or values.

The surge follows the tumbling of the Egyptian pound’s value against the dollar from around EGP 30.85 to the dollar to over EGP 49 to the dollar following its float on March 6.

Al Ansari Exchange said in a statement to Dubai Financial Market that the decision is “highly beneficial” to Egyptians residing in the UAE.

Chief operations officer Ali Al Najjar said: “The recent decision issued by the Egyptian Central Bank to liberalise the exchange rate of the pound, allowing it to be determined according to market mechanisms has had a significant impact on financial transfers from the UAE to Egypt.”

He said the exchange was committed to continuing to provide financial transfer services to the country to enhance financial inclusion, prosperity, and the growth of the Egyptian economy.

Egypt is one of the most active corridors for financial transfer from the UAE, fifth after India, Philippines, Pakistan and Bangladesh, the exchange said.

The country signed an $8 billion loan deal with the International Monetary Fund (IMF) last week while last month, the UAE’s ADQ announced it is to lead a consortium investing $35 billion in a North Coast city development.

(Writing by Imogen Lillywhite; editing by Seban Scaria)