- Diaspora inflows jump 47.2% to $26.6 billion in eight months
- Currency liberalisation boosts formal remittance channels and stabilises economy
CAIRO, EGYPT – Remittances from Egyptians working abroad surged 47.2% to $26.6 billion in the first eight months of 2025, from $18.1 billion a year earlier.
The Central Bank of Egypt (CBE) described the development as “record-breaking inflows.”
On a monthly basis, remittances in August rose 32.6% to $3.5 billion, compared to $2.6 billion in August 2024, according to the bank’s latest report. The inflows underscore renewed confidence in Egypt’s financial reforms and highlight the crucial role of its diaspora in stabilising the economy amid ongoing efforts to rein in inflation and attract investment.
Currency reform revives confidence
Analysts attribute the sharp increase to the CBE’s sweeping currency liberalisation, implemented in March 2024, which ended the long-running parallel market for foreign exchange. The move unified official and black-market rates, redirecting significant hard currency flows into the formal banking system and making official channels more appealing for Egyptians abroad.
The reform has also energised other parts of the economy. Tourism revenues rose 21% in the 2024/2025 fiscal year to $16.7 billion, supported by a record 179.3 million tourist nights. In the first half of 2025 alone, arrivals surged 24% year-on-year to 8.7 million visitors, Tourism Minister Sherif Fathy said in July.
Inflation, once peaking at 38% in September 2023, has eased to 11.7% by September 2025, while consumer confidence and investment sentiment have improved steadily.
Digital innovations have also bolstered remittance flows. The CBE’s InstaPay application, launched to facilitate instant international transfers, has made sending money home faster and more convenient for Egyptians abroad, with direct transfers to bank accounts and mobile wallets.
Broader economic revival
Remittances remain one of Egypt’s top foreign-exchange earners, alongside revenues from the Suez Canal, energy exports, and tourism. Official data show the country’s current account deficit narrowed by 25.9% to $15.4 billion in fiscal 2024/2025, from $20.8 billion the previous year.
The CBE reported a ninth consecutive monthly increase in foreign reserves, up $283.5 million to $49.5 billion in September 2025. Year-on-year, reserves grew by $2.8 billion from $46.7 billion.
Beyond remittances, Egypt’s non-oil exports climbed 21% in the first nine months of 2025 to $36.64 billion, narrowing the trade deficit by 18% to $22.77 billion. Together, the data paint a cautiously optimistic picture of an economy slowly regaining balance through reform, resilience, and digital innovation.
