Remittances from Egyptians working abroad have experienced remarkable growth following a series of financial reforms implemented in March 2024, the Central Bank of Egypt (CBE) announced on Monday, November 25. These inflows doubled in September 2024, reaching approximately $2.7 billion, compared to $1.3 billion during the same month in 2023.
The upward trend extended across the first quarter of the fiscal year 2024/2025 (July–September), with remittances increasing by an impressive 84.4%. Total inflows for the period reached $8.3 billion, a significant rise from the $4.5 billion recorded during the corresponding quarter the previous year. Over the first nine months of 2024, remittances surged by a staggering 42.6%, totaling $20.8 billion compared to $14.6 billion in 2023.
This sharp increase is attributed to monetary policy reforms introduced by the CBE in March 2024 to stabilize the economy and attract foreign exchange inflows. These measures included raising key interest rates substantially: the overnight deposit and lending rates were increased to 27.25% and 28.25%, respectively, while the main operation rate was hiked by 600 basis points to 27.75%.
The CBE’s actions aimed to address ongoing economic challenges, including a persistent foreign currency shortage and inflationary pressures. By offering higher returns on deposits, the reforms incentivized expatriates to send more money home, boosting the country’s foreign currency reserves and providing much-needed support to the national economy.
Remittances from Egyptians abroad are a critical component of Egypt’s economic stability, often serving as a lifeline for families and contributing to various sectors, including real estate, healthcare, and education. The recent surge highlights the effectiveness of the CBE’s reforms in fostering confidence among Egyptians working overseas and underscores the vital role of remittances in cushioning the economy against external shocks.
As Egypt continues to navigate its economic recovery, the government is expected to explore additional policies to further strengthen the flow of remittances, which are a key pillar of its foreign exchange earnings alongside tourism, exports, and the Suez Canal.