According to official data from Egypt’s central bank, the first 10 months of the fiscal year 2024–25 saw a record USD 29 billion in remittances from Egyptians employed overseas, an increase of more than 77%. Remittance inflows rose 72.3% year over year to USD 12.04 billion between January and April alone.
The significant increase reflects a broader improvement in Egypt’s external financial position and highlights the growing confidence of foreigners in the nation’s financial system. The Central Bank of Egypt attributed the increase to recent actions aimed at stabilising the currency and promoting the use of official channels for remittances. With Egypt’s net international reserves rising from USD 47.8 billion in March to USD 48.5 billion at the end of May, the impact of these policies is also evident.
In a statement, the central bank noted, “On a monthly basis, remittances in April 2025 increased by 39% year on year, reaching approximately USD 3 billion, compared to USD 2.2 billion in the same month of 2024.”
Remittances are one of Egypt’s most vital sources of foreign currency, alongside Suez Canal revenues, tourism, and exports. They previously peaked at USD 31.9 billion during FY 2021/22, before declining to USD 22.1 billion in FY 2022/23.
The decline was largely attributed to the global economic fallout from the COVID-19 pandemic, which caused business closures and job losses among Egyptian expatriates, as well as pressures from the local exchange rate and the emergence of a parallel currency market, compounded by the Russia–Ukraine war.
The increase in remittances coincides with broader economic reforms being implemented as part of a stabilisation programme supported by the International Monetary Fund (IMF). Egypt’s foreign exchange position has improved as a result of these reforms, which have also helped attract more foreign investment.
According to data from the Central Agency for Public Mobilisation and Statistics (CAPMAS), Egypt ranked seventh globally in terms of remittance receipts in 2024, with USD 22.7 billion in inflows. The list was topped by India (USD 129.1 billion), followed by Mexico (USD 68.2 billion), China (USD 48 billion), the Philippines (USD 40.2 billion), Pakistan (USD 33.2 billion), and Bangladesh (USD 26.6 billion).
Mostafa Madbouly, the prime minister, declared in May that Egypt’s real gross domestic product grew by 31.9% in the first half of the fiscal year. While foreign direct investment increased by about 17%, private sector investment rose by 80%. However, inflation remains a significant problem. Due in large part to ongoing pressure on non-food prices, the annual urban headline inflation rate increased from 13.9% in April to 16.8% in May.
These inflationary trends coincide with ongoing domestic and international forces that continue to shape Egypt’s overall economic environment. Amidst continuing structural reforms, external shocks, and public debt management initiatives, the government is managing a fragile recovery.