Egypt’s remittance inflows surged 72.4% year-on-year to $32.6 billion between March 2024 and February 2025, according to the Central Bank of Egypt.

This sharp rise from $18.9 billion the previous year highlights the growing importance of remittances as a vital source of foreign currency for Egypt.

February 2025 marked the twelfth consecutive month of rising remittance inflows. That month alone saw inflows more than double to $3 billion, up from $1.3 billion in February 2024, a new record for remittances in any February on record.

The upward momentum continued from earlier months. In January 2025, remittances rose 83.2% year-on-year. Over the first seven months of FY2024/2025, inflows totaled $20 billion, an 81% increase compared to $11 billion during the same period a year prior.

This surge in remittances has supported Egypt’s external position. Net International Reserves climbed to $48.1 billion by the end of April 2025, reflecting improved currency stability and external confidence.

Inflation, however, ticked upward slightly. The headline rate rose to 13.5% in April, compared to 13.1% in March and 12.5% in February. Despite the increase, inflation remains far below the 31.8% peak recorded in April 2024, which followed a significant currency devaluation in March of that year.

Meanwhile, the $/EGP exchange rate stood at EGP 50.37 for buying and EGP 50.51 for selling in early May, slightly down from EGP 50.78 at the start of the month. Although the pound remains weak by historical standards, the slight appreciation may signal easing pressure on the currency.

The sharp rise in remittances, alongside strengthening reserves and moderating inflation compared to last year, has bolstered economic sentiment. While challenges remain, particularly around inflation and exchange rate volatility, Egypt’s improving remittance flows and fiscal indicators offer reasons for cautious optimism as the country moves through 2025.