Egypt Daily News – Remittances from Egyptians working abroad recorded a significant jump of 77.1% year-on-year during the first 10 months (July to April) of the 2024–2025 fiscal year, reaching approximately $29.4 billion, compared to around $16.6 billion in the same period of the previous fiscal year.
This increase followed rapid growth over the first 9 months, with remittances reaching $26.4 billion, up 82.7% compared to the previous year. The remaining months (April and May) are expected to add around $3 billion, bringing the total for the 10-month period to this new high.
Key drivers behind this surge include:
- Currency liberalization and economic reforms: Since March 2024, the Central Bank of Egypt has pursued a floating exchange rate policy, which encouraged inflows through official channels and curbed the black market.
- Shift to banking channels: Many Egyptian expatriates have reportedly shifted to using official banking systems for transfers, citing greater safety and transparency compared to informal markets.
- Incentive programs: The government launched several initiatives targeting expatriates, including customs exemptions, high-yield dollar certificates, banking facilitation, and overseas labor promotion campaigns.
Economic implications:
- Liquidity and deficit support: Remittances are now the second-largest source of foreign currency after goods exports, surpassing revenues from tourism and the Suez Canal. This directly supports the balance of payments and reduces dependence on external borrowing.
- Boost to foreign reserves: The rise in remittances has contributed to a growth in foreign currency reserves, which reached about $48.5 billion by the end of May 2025.
- Inflation control and currency stability: The influx of dollars into the banking system supports the Egyptian pound’s stability and helps contain inflation, reinforcing confidence in the domestic economy.
Caution against overdependence:
Despite the positive outlook, analysts warn against relying too heavily on remittances as a stable and permanent resource. Risks include potential economic fluctuations in host countries and changes in global labor markets.
In conclusion, the sharp rise in remittances from Egyptians abroad represents a strong boost to the national economy, though experts emphasize the need to diversify foreign currency sources through sustainable channels such as exports, tourism, and investment.
