Ahmed Kamel – Egypt Daily News
Egypt has recorded a sharp rise in remittances from citizens working abroad, underscoring one of the country’s most important and stable sources of foreign currency amid broader economic pressures.
According to central bank data, remittances increased by 28 percent during the period from July to February of the 2025–2026 fiscal year, reaching approximately 29.4 billion US dollars, compared to about 23 billion dollars during the same period a year earlier.
On a monthly basis, inflows also showed strong momentum. In February 2026 alone, remittances rose by 25.7 percent to around 3.8 billion dollars, up from roughly 3 billion dollars in February 2025. The consistent growth highlights sustained confidence among Egyptians working abroad and improved transfer channels.
Remittances remain one of Egypt’s most critical sources of hard currency, helping support foreign exchange liquidity and contributing to relative stability in the currency market. The latest figures reinforce their growing importance at a time when external financing pressures remain significant.
At the same time, broader financial indicators show mixed but improving trends in Egypt’s external position. External debt service payments declined during the first quarter of the fiscal year, falling to 6.44 billion dollars from nearly 7.95 billion dollars in the same period last year. The payments included 2.08 billion dollars in interest and 4.36 billion dollars in principal repayments.
Total external debt rose slightly to 163.7 billion dollars by the end of September 2025, compared to 161.23 billion dollars in June. However, the ratio of external debt to GDP improved, falling to 42.4 percent from 44.2 percent, suggesting better relative debt sustainability despite nominal increases.
Inside the banking sector, deposits also showed strong growth. Total customer deposits reached 15.896 trillion Egyptian pounds by the end of 2025, up from 13.599 trillion pounds a year earlier, an increase of more than 2.2 trillion pounds. The rise reflects stronger liquidity conditions and continued confidence in the banking system.
Taken together, the data points to a financial landscape marked by competing forces: rising external inflows from expatriates and stronger banking deposits on one side, and persistent external debt obligations on the other.
For policymakers, remittances continue to serve as a crucial buffer, helping stabilize foreign currency availability at a time when global and regional economic conditions remain volatile.
