Remittances from Egyptians working abroad jumped 40.5 percent last year to a record US$41.5 billion, according to a statement released Monday by the Central Bank of Egypt (CBE).
The figure marks a sharp increase from approximately US$29.6 billion recorded in 2024, highlighting the growing role of expatriate remittances in supporting Egypt’s economy.
During the first half of the 2025/2026 fiscal year, between July and December 2025, remittances rose 29.6 percent to US$22.1 billion, up from US$17.1 billion in the same period a year earlier. Monthly inflows also showed strong momentum, climbing 24 percent in December 2025 to US$4 billion, compared with US$3.2 billion in December 2024.
The CBE attributed the increase to a series of corrective measures implemented in March 2024, including a sharp devaluation of the local currency, the Egyptian pound, and a six-percentage-point interest rate hike. These measures helped narrow gaps in the domestic hard-currency market and encouraged formal channels for remittance inflows.
“Remittances are a key buffer for Egypt’s economy, supporting household consumption and providing foreign currency stability,” the central bank said in its statement. “They remain among the country’s largest and most stable sources of external financing, alongside tourism revenues and Suez Canal earnings.”
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The inflows have also contributed to bolstering Egypt’s foreign reserves and easing pressure on the country’s balance of payments (BOP). The BOP deficit reached US$1.6 billion in the first quarter of fiscal year 2025/2026, up 61.4 percent from US$991.2 million in the corresponding period of 2024. Analysts said that higher remittances have provided a cushion amid growing external imbalances.
In the second quarter of 2025, remittances increased by 29.8 percent to US$10.8 billion, compared with US$8.3 billion during the same period in 2024. The continued rise signals that Egyptians abroad are increasingly turning to formal channels, reflecting confidence in Egypt’s financial system and the measures introduced by the central bank.
Economists note that the sharp surge in remittance inflows has wider economic implications. By supplementing household incomes, these funds boost domestic consumption and contribute to economic growth. They also provide a vital source of foreign currency for businesses and the government, mitigating some of the challenges posed by the country’s trade and current account deficits.
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Egypt has historically relied on remittances, tourism, and Suez Canal revenues as pillars of foreign currency earnings. The surge in expatriate remittances follows a period of economic adjustments aimed at stabilizing the Egyptian pound, narrowing the black-market premium, and improving access to foreign currency for citizens and businesses.
Analysts caution, however, that sustaining the momentum will require continued macroeconomic stability and supportive policies that encourage both formal inflows and domestic investment. Remittances remain critical not just as a source of cash for households, but also as a stabilizing factor for Egypt’s broader economic and financial system.
The Central Bank’s data underscores the importance of Egyptians working abroad in shoring up national reserves, supporting consumer demand, and cushioning the economy against external shocks.
