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In the first quarter of 2025, remittances rose by 84.4% compared to the same period the previous year, and in the first months of this year alone reached USD 30.2bn.
Remittances to Egypt from abroad have increased considerably in the recent years. If the value of gold in the Central Bank’s reserves stands at roughly USD 16.5bn, the value of Egyptians’ remittances far exceeds that amount.
Gold is a fixed reserve asset and a safe haven, and its value fluctuates with global prices. Remittances, on the other hand, are a renewed and substantial annual inflow – exceeding $30bn – replenishing this “mine” every year.
These transfers originate from Egyptian human capital abroad, a resource that does not require foreign direct investment or external borrowing. This money is driven by social and economic motivations, making it more sustainable and more resilient than other sources of income that are vulnerable to geopolitical shocks or global market fluctuations.
Remittances witnessed a notable decline in 2022-23 due to the expansion of the parallel currency market. But after the decision to liberalise the exchange rate in March 2024 and the reforms that followed, remittances surged and returned to official channels. In the first quarter of 2025, remittances rose by 84.4% compared to the same period the previous year, and in the first months of this year alone reached USD 30.2bn.
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The drivers behind this increase include the unification of the exchange rate, government incentives such as the initiative to import customs-exempt cars, the issuance of high-yield savings instruments, as well as social motivations such as expatriates’ support for their families in Egypt and their national attachment to their homeland.
