In Ten Years, Inflows Jump from $17 bln to $36.5 bln March 2024: A Historic Turning Point from Decline to Boom in Remittances 70% of Inflows Originate from Gulf Countries For many years, remittances from Egyptians working abroad have been the backbone of the Egyptian economy. Millions of households inside Egypt depend on them as a primary source of income, and the national economy relies on them as a major source of foreign currency. Tracing the path of these remittances over the past decade through August 2025 shows cycles of rises and declines, culminating in an unprecedented record in Egypt's history. At the beginning, during the fiscal year 2015/2016, remittances from Egyptians abroad amounted to around $17.1 billion. At that time, the gap between the official exchange rate of the Egyptian pound and the black-market rate was wide, which pushed part of the remittances to flow through unofficial channels. Nevertheless, the amount was still important in supporting the economy and meeting part of the country's foreign currency needs. With the decision to liberalise the exchange rate in November 2016, the picture changed dramatically. Remittances increased in the fiscal year 2016/2017 to $21.8 billion, and then rose further in 2017/2018 to $26.4 billion. The main reason behind this surge was that Egyptians abroad regained confidence in the banking system after the official exchange rate became close to the parallel rate, which made transferring money through banks better and safer than through unofficial methods. In the following years, particularly in 2018/2019, remittances saw a slight decline to $25.150 billion. However, they rose again in 2019/2020 to $27.7 billion. At the onset of the COVID-19 crisis, many expected that remittances to fall due to disruptions in foreign labour markets. What actually happened was the opposite: remittances increased in 2020/2021 to $31.4 billion. This rise reflected the stronger financial support that Egyptian workers abroad provided to their families during the difficult circumstances that Egypt and the world experienced during the pandemic. The fiscal year 2021/2022 then came to record a new high of $31.9 billion. This figure reflected the improvement in the conditions of Egyptians working in the Gulf, supported by rising oil prices, which increased their incomes and consequently boosted their ability to send money home. After this peak, remittances entered a sharp decline during the fiscal years 2022/2023 and 2023/2024. In the first of these years, remittances fell to $22.1 billion, and in the following year they dropped slightly to $21.9 billion. The main reason for this decline was the widening gap between the official exchange rate of the pound and the parallel market rate, which encouraged many to send their money through unofficial channels or keep it outside the Egyptian banking system. This negatively affected banks' foreign currency resources and worsened the foreign exchange crisis inside the country. The major turning point came on March 6, 2024, when the Central Bank of Egypt (CBE) decided once again to liberalise the exchange rate, closing the gap between the official and parallel markets. From that moment, confidence returned to the banking sector, and most remittances shifted from unofficial to official channels. The result was unprecedented: in the fiscal year 2024/2025, remittances reached $36.5 billion, the highest figure in Egypt's history. In fact, June 2025 alone witnessed remittances worth $3.6 billion, the highest monthly level ever recorded. At the start of the new fiscal year 2025/2026, this momentum continued. Although full official data for July and August has not yet been released, initial indicators confirm that remittances in July approached $3.2 billion, and in August they are expected to be close to or slightly above that. Thus, the total for the first two months of the new fiscal year exceeded $6.5 billion, confirming the continuation of the upward trend in remittances after the currency float. Most remittances originate from the Gulf countries, with Saudi Arabia taking the largest share, followed by the United Arab Emirates, Kuwait, and Qatar. There are also transfers from Europe and the United States, but they remain smaller compared to the Gulf region. These remittances are not only vital for the overall economy, but also serve as a lifeline for millions of Egyptian households that depend on them for living expenses, education, and healthcare. The economic impact of remittances is immense. They support the balance of payments, boost foreign currency reserves, and provide social stability. Moreover, in recent years the Central Bank has launched programs aimed at empowering women by encouraging them to receive remittances through bank accounts and electronic wallets, thereby enhancing their economic and social role. Looking to the future, if the exchange rate remains stable at the official market level and no strong parallel market emerges, remittances are likely to remain around three billion US dollars per month or even higher. However, any return to exchange rate disparities could push part of the remittances back to unofficial channels. In addition, the conditions of labour markets in the Gulf and the trajectory of oil prices will remain decisive factors in shaping Egyptians' ability to remit. Banking products designed for Egyptians abroad, such as dollar-denominated certificates with attractive returns, will also play a role in attracting more remittances through official channels. Finally, we can say that Egyptian remittances have gone through a decade of ups and downs. From $17.1 billion in 2015/2016 to $36.5 billion in 2024/2025, and despite periods of rise and fall, these remittances have proven to be the most stable and reliable source for the Egyptian economy. Up to August 2025, the indicators remain positive, and it appears that these financial inflows will continue to be a central pillar in supporting the Egyptian economy in the years to come.
