Remittances from Egyptians working abroad surged to a record US$33.9 billion in the first 10 months of 2025, underscoring the critical role played by expatriate income in shoring up the country’s foreign currency inflows amid continuing economic pressures.
The Central Bank of Egypt said on Sunday that the inflows compared with about US$23.7 billion over the same period last year, marking one of the strongest year-on-year increases on record. On a monthly basis, remittances rose by 26.2 percent in October to around US$3.7 billion, up from nearly US$2.9 billion in October 2024.
Egypt has long relied on remittances as a key source of hard currency, alongside tourism revenues, Suez Canal receipts and exports. The latest figures reinforce the importance of expatriate transfers at a time when the country has faced repeated external shocks, including regional conflicts, high global interest rates and pressure on emerging-market currencies.
Prime Minister Mostafa Madbouly said the surge reflected the “strong sense of belonging and patriotism” shown by Egyptians abroad, describing remittances as one of the country’s most important and stable sources of foreign exchange. He credited recent monetary and economic reforms, including the adoption of a more flexible exchange-rate regime, with helping restore confidence and channel inflows back through official banking channels.
The government has worked closely with the central bank since early 2024 to implement a reform programme aimed at stabilising the economy, reducing foreign currency shortages and rebuilding reserves. Those measures were part of a broader adjustment effort backed by the International Monetary Fund, which has repeatedly stressed the need for exchange-rate flexibility and tighter monetary policy.
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In a separate report, the cabinet’s media centre said the record inflows reflected what it described as prudent monetary policy by the central bank, helping stabilise the exchange rate and strengthen net international reserves. Officials argue that the improvement has enhanced Egypt’s ability to absorb external shocks at a time of heightened global uncertainty.
Remittances have shown a strong upward trend over the longer term. According to official data, inflows more than doubled over the past decade, reaching about $36.5 billion in the 2024/2025 fiscal year, compared with $17.1 billion in 2015. The IMF has said the recent acceleration reflects renewed confidence following reforms introduced since March 2024.
Analysts say the rebound also reflects a shift away from informal transfer channels that flourished during periods of currency misalignment. Remittances fell sharply in 2022 and 2023 as a widening gap between the official and parallel exchange rates encouraged expatriates to send money through unofficial means. That trend reversed after the authorities liberalised the exchange rate and tightened controls on the black market.
Mohamed Abdel Aal, a prominent Egyptian banking expert, described remittances as “Egypt’s inexhaustible mine”, arguing that their economic value exceeds that of traditional reserve assets such as gold. He noted that gold holdings in the central bank’s reserves are estimated at around $16.5 billion, compared with annual remittance inflows now exceeding $34 billion.
“Gold is a fixed asset whose value depends on global prices,” Abdel Aal said, while remittances represent a renewable flow generated by human capital abroad. Unlike foreign borrowing or some forms of investment, he added, remittances do not create future repayment obligations and are less exposed to geopolitical volatility.
Economists also point to the social dimension of remittances, which are largely driven by family support and community ties. That makes them more resilient than other sources of foreign currency, such as portfolio flows, which can reverse rapidly in response to market sentiment.
The government has introduced incentives aimed at sustaining inflows, including high-yield savings instruments and programmes allowing expatriates to import cars duty-free under certain conditions. Abdel Aal said further steps could include dollar-denominated investment funds, pension and health insurance schemes for Egyptians abroad, and targeted tax incentives.
For policymakers, the latest figures provide some breathing space but do not remove underlying challenges. Egypt continues to face high inflation, heavy external financing needs and pressure to generate growth that creates jobs at home.
Still, the remittance surge highlights a durable pillar of support for Africa’s most populous nation one rooted not in commodities or borrowing, but in the steady earnings of millions of Egyptians living and working overseas.
