Egypt Remittances Hit Historic High to $3.8 Billion

Egyptian expatriates sent a record-breaking $3.8 billion in remittances back home during July 2025, the highest monthly total ever recorded, according to new data released Wednesday by the Central Bank of Egypt (CBE).

The surge represents a 26.3% increase compared to the same month in 2024, reflecting a renewed confidence in Egypt’s financial system and the continued commitment of its diaspora amid global economic uncertainty.

Over the first seven months of 2025, remittance inflows have soared to $23.2 billion, marking a staggering 49.7% increase year-on-year, as Egyptians abroad respond to currency liberalization policies and a more flexible foreign exchange environment.

Remittances have long been a critical source of foreign currency for Egypt, particularly during times of macroeconomic strain. But July’s figures stand out not just for their size, they arrive at a pivotal moment.

In March 2024, the Central Bank implemented a major policy shift by fully floating the Egyptian pound, a move designed to curb a growing black market for dollars and secure vital international funding. That decision came in parallel with the International Monetary Fund (IMF) expanding its loan package to Egypt from $3 billion to $8 billion, amid escalating geopolitical risks from the ongoing Gaza conflict.

Since then, the Egyptian pound has lost significant ground, with the exchange rate now hovering between 48.15 and 48.42 EGP per US dollar in official bank dealings, a steep decline that has made remittances more valuable than ever for Egyptian families.

Alongside the remittance boom, Egypt continues to face inflationary pressures and rising demand for foreign currency. Major global currencies, including the US dollar, British pound, and Gulf currencies, all posted gains against the Egyptian pound in Wednesday’s trading.

The exchange rate movements have fueled both concerns and opportunities. For households relying on foreign remittances, the weakened pound translates into greater local purchasing power. But for businesses and importers, the costs of foreign goods and raw materials continue to climb.

The record remittance inflow may help cushion Egypt’s balance of payments and provide some relief to foreign reserves, which have been strained by the country’s heavy debt burden and rising import costs.

Economists suggest that sustaining this trend will depend on maintaining macroeconomic stability and ensuring that financial channels remain open and accessible for Egyptians abroad. Recent reforms, including the easing of capital controls and digitization of remittance services, appear to be bearing fruit.

With geopolitical uncertainty persisting in the region and global financial markets still volatile, Egypt’s dependence on its diaspora remains not just strategic, but existential.