Remittances to Egypt rise as reforms instill confidence

Remittances from Egyptian expatriates rose for 11 consecutive months following the start of economic reforms introduced in March 2024.

Overseas Egyptians sent home $20 billion between July and January — the first seven months of the 2024-2025 fiscal year — an increase of 81 percent from $11 billion a year ago, according to the Central Bank of Egypt.

In January remittances increased by 83 percent to nearly $3 billion from $1.6 billion in January 2024, marking a record high for the month

In its March report, the International Monetary Fund (IMF) said remittances from Egyptian workers overseas and tourism receipts have remained robust, helped by a shift to a flexible exchange rate regime in March 2024, which is yielding positive results.

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However, the external environment is expected to remain challenging as successive external shocks have continued and persisted, the IMF said.

Trade disruptions in the Red Sea since December 2023 have cut foreign exchange inflows from the Suez Canal by $6 billion in 2024.