According to the CBE, this significant growth continues a rising trend of remittance inflows, with the total of July and August 2024 remittances reaching $5.6 billion, a 76.2 percent (Y-o-Y) increase compared to $3.2 billion in the same period of 2023.

Moreover, from January to August 2024, total remittances jumped by 36.4 percent to $18.1 billion, up from $13.3 billion during the same months of 2023. This lifts the total remittance inflows from expats over the past two years to an extraordinary level.

Remittances' role in Egypt's economic stability
 

The increase in remittance inflows over the past two years has provided critical support to Egypt’s foreign currency reserves, which have been under pressure due to the global economic slowdown, inflationary trends, and a fluctuating exchange rate.

These financial inflows from Egyptians working abroad have played a vital role in stabilizing the national economy, easing trade deficits, and supporting domestic households, particularly in the face of rising living costs.

Remittances from Egyptian expatriates, especially those residing in the Gulf Cooperation Council (GCC) countries, the United States, and Europe, have traditionally been a significant source of foreign currency for Egypt.

However, these inflows have become even more significant recently as Egypt navigates a period of economic reform and recovery.

The surge in remittances can be attributed to several factors. These include a stronger focus on digital financial channels, which have made it easier for Egyptians abroad to send money home, and the enduring commitment of Egypt’s expatriate workforce to support their families and contribute to the country’s economic stability.

Moreover, the rise in remittance inflows is attributed to the actions taken by the CBE in March, including the unification of the foreign exchange rate, which has contributed to eliminating the parallel currency market.

According to the World Bank's latest data, Egyptian remittances remain a cornerstone of the country’s economy. They have positioned Egypt as the top recipient of remittances among low- and middle-income nations in Africa and the Arab world.

The country also ranks fifth globally in terms of total remittance inflows from overseas workers.