Egypt’s balance of payments recorded an improvement in the first quarter of fiscal year 2025/2026, as the current account deficit narrowed, according to data released by the Central Bank of Egypt (CBE) on January 21.
The CBE said the current account deficit declined by 45.2 percent year-on-year, reaching $ 3.2 billion during the July–September 2025 period, compared with US$ 5.9 billion in the same quarter of the previous fiscal year.
The overall balance of payments (BoP) recorded a deficit of $ 1.6 billion, compared with $ 991.2 million a year earlier.
Current account developments
According to the CBE, net unrequited current transfers increased by 28.4 percent to $10.7 billion, mainly due to a rise in remittances from Egyptians working abroad, which increased by 29.8 percent to $ 10.8 billion, compared with $ 8.3 billion in the same period of the previous year.
The services balance recorded a surplus of $ 5.0 billion, up 23.4 percent year-on-year. Tourism revenues rose by 13.8 percent to $ 5.5 billion, supported by an increase in tourist nights to 58.7 million.
Suez Canal transit receipts increased by 12.4 percent to $ 1.05 billion, reflecting higher net tonnage and an increase in the number of transiting vessels.
The non-oil trade deficit declined by 4.0 percent to $ 9.5 billion, as non-oil export proceeds rose by US$ 1.9 billion to US$ 9.8 billion. The increase was concentrated in exports of gold, household electric appliances, vegetables, fruits, and ready-made garments.
Non-oil merchandise imports increased to $ 19.3 billion, compared with $ 17.7 billion a year earlier.
The oil trade deficit widened by $ 946.6 million to $ 5.2 billion, mainly due to higher imports of natural gas and crude oil. Oil exports rose slightly to $ 1.3 billion, supported by increased exports of oil products and natural gas.
The investment income deficit increased by 2.3 percent toS$ 4.4 billion, reflecting lower income receipts and higher income payments.
Capital and financial account
The capital and financial account recorded a net outflow of $ 366.4 million, compared with a net inflow of $ 3.8 billion in the same quarter of the previous fiscal year.
Foreign direct investment (FDI) in Egypt recorded a net inflow of $ 2.4 billion, while portfolio investment registered a net inflow of $ 1.8 billion, compared with a net outflow a year earlier.
The CBE said the net outflow was mainly due to an increase in banks’ foreign assets abroad by $ 5.3 billion. Medium- and long-term loans and facilities recorded a net repayment of $ 1.0 billion.
Exchange rate developments
The U.S. dollar remained stable against the Egyptian pound in January, quoted at EGP 47.33 for buying and EGP 47.43 for selling at Banque Misr and the National Bank of Egypt, with the same rates recorded at the Commercial International Bank (CIB) and the United Bank on 18 January.
At Al Baraka Bank Egypt, the dollar was trading at EGP 47.30 for purchasing and EGP 47.40 for selling.
According to recent data from the Central Bank of Egypt, the stability in the exchange rate comes as remittances from Egyptians working abroad continue to support foreign currency inflows.
Global oil developments
The CBE data were released amid developments in global oil markets following recent actions by the United States regarding Venezuelan oil exports.
CBS News reported that U.S. officials have confirmed the completion of the first sale of Venezuelan oil, valued at US$ 500 million, with further sales expected in the coming weeks. The report added that President Donald Trump has said the United States plans to sell 30 to 50 million barrels of Venezuelan oil, with the aim of pushing global oil prices toward US$ 50 per barrel as part of a broader fossil-fuel-focused energy strategy.
EGPC environmental performance platform
Separately, the Ministry of Petroleum and Mineral Resources announced that the Egyptian General Petroleum Corporation (EGPC) has launched a digital platform to monitor and evaluate environmental performance indicators across affiliated companies.
According to the ministry, the platform was developed by EGPC’s safety and environment departments in cooperation with its information technology department. It aims to unify environmental data collection, support digital analysis of performance indicators, improve data accuracy and transparency, and enhance decision-making within the sector.
The ministry added that training workshops have been held for representatives of affiliated companies to ensure proper use of the platform and the quality of submitted data.
Outlook
In its press release, the Central Bank of Egypt said that balance of payments developments during the first quarter of fiscal year 2025/2026 reflect the impact of higher remittances, improved services receipts, and changes in trade and capital flows.
The CBE added that balance of payments performance remains influenced by global economic conditions, developments in international energy markets, and movements in capital flows, noting that the data for the period are preliminary.
