The Central Bank of Egypt (CBE) has announced that remittances from Egyptians working abroad rose by 81% during the first seven months of the fiscal year (FY) 2024/2025, reaching approximately $20bn. This marks a significant increase from the $11bn recorded during the same period of the previous fiscal year.
In a statement released Wednesday, the CBE attributed the continued rise in remittances—now sustained for an eleventh consecutive month—to the economic reform measures implemented in March 2024.
According to the bank, remittances in January alone jumped by 83.2% year-on-year, reaching approximately $2.9bn compared to about $1.6bn in January 2024. This marks the highest-ever monthly inflow for January.
Remittances from Egyptians abroad remain one of the country’s most vital sources of hard currency. The highest annual figure was recorded in FY2021/2022 at $31.9bn, before declining to $22.1bn in FY2022/2023. That drop was largely attributed to the global COVID-19 pandemic, which led to widespread job losses for Egyptians overseas, as well as complications related to exchange rate instability, the emergence of a parallel market for foreign currency, and the impact of the Russia-Ukraine war.
Despite ongoing global economic pressures, Egypt’s position among the world’s top remittance-receiving countries has improved, rising from sixth to fifth place globally, following India, Mexico, China, and the Philippines.
Commenting on the figures, banking expert Mohamed Abdel Aal emphasized that remittances from Egyptians abroad remain one of the country’s most stable and significant sources of foreign exchange. These inflows are essential in covering Egypt’s strategic import needs, settling foreign trade obligations, and supporting the CBE’s foreign currency reserves.
He stressed that the consistent rise in remittances over the past year underscores the strong commitment of Egyptians abroad to contributing to national development. It also reflects the direct and positive impact of these inflows on the stability of Egypt’s currency and financial markets.
Abdel Aal pointed to the CBE’s decision on March 6, 2024, to liberalize the exchange rate as the primary driver behind the rebound in remittance flows. The move effectively eliminated the black market and unified the exchange rate, encouraging remittances to be routed through official banking channels.
He added that the CBE’s tight monetary policy and successive interest rate hikes have enabled banks to offer attractive and diverse savings and investment products for Egyptians abroad, contributing further to the uptick in remittances.
To sustain and enhance this upward trend, Abdel Aal emphasized the need to preserve exchange rate flexibility and allow market forces to determine its value. He also recommended expanding the use of digital technologies and electronic services to simplify and reduce the cost of remittances. Finally, he urged banks and the government to continue launching incentives and tailored products that address the evolving needs of Egypt’s overseas workforce.
