RIYADH: Remittances from Egyptians working abroad surged to a record $32.6 billion in the 12 months through to the end of February, marking a 72.4 percent increase from the previous year, according to official data.
The Central Bank of Egypt attributed the sharp rise to a series of economic reforms launched in March 2024, which included currency stabilization efforts, improved access to foreign exchange, and incentives for expatriates to channel funds through formal banking systems.
The steady growth in remittances is a key factor in supporting country’s foreign currency reserves and stabilizing the economy amid ongoing fiscal and monetary adjustments.
In February, remittances hit $3 billion, more than double the $1.3 billion registered in the same month of 2024.
This marked the twelfth consecutive month of growth and sets a new record for February inflows, which have historically been lower than other months.
This surge builds on earlier trends that saw remittances from Egyptians abroad reach $2.6 billion in November 2024 — a 65.4 percent annual increase — driven by economic reforms, including the full flotation of the Egyptian pound under an International Monetary Fund−backed 8$ billion loan agreement.
Between July and November 2024, remittances rose 77 percent year on year to $13.8 billion, contributing to a 47.1 percent annual increase in total inflows to $26.3 billion by November.
Remittances play a crucial role in Egypt’s economy, supported by an estimated 12 million to 14 million expatriates, most of whom work in Gulf Cooperation Council countries.
The Egyptian pound’s sharp depreciation and soaring inflation have pushed even more citizens to seek jobs abroad. By earning in stronger foreign currencies, they aim to offset the effects of economic instability back home.
Furthermore, Egypt’s net international reserves have continued to grow steadily, supported by increasing remittances from Egyptians working overseas.
The country’s net foreign assets climbed by $1.48 billion in February, their second increase this year after having fallen in each of the last three months of last year, central bank data showed.
Net foreign assets rose to the equivalent of $10.18 billion from $8.70 billion at the end of January, according to Reuters calculations based on official central bank currency exchange rates.
Reuters said the increase “appeared related to an increase in Egyptian treasury bill purchases by foreign investors.”
