The surge in remittances is attributed to the series of economic adjustments implemented by the CBE in March 2024. These included the fourth wave of local currency fair pricing and a strategic increase in key interest rates by a cumulative 800 basis points throughout the year. Currently, interest rates stand at 27.25% for overnight deposits, 28.25% for overnight lending, and 27.75% for the main operation rate.
In December 2024 alone, remittances doubled to $3.2 billion from $1.6 billion in the same month of the previous year, demonstrating an impressive annual growth. Additionally, there was a 24.5% increase from November to December 2024, highlighting a positive trend fueled by the reforms.
Renowned economist Dr. Amr Adly commented, “The increase in remittances is a clear indicator of confidence in Egypt’s economic policies. The CBE’s measures to unify the foreign exchange rate and eliminate the parallel market have been pivotal.”
Remittances, a vital source of foreign exchange, help stabilize Egypt’s currency reserves and support economic development. The first half of the fiscal year 2024/2025 saw remittances grow by 80.7%, reaching $17.1 billion compared to $9.4 billion in the same period the previous year. This growth underscores the critical role of remittances in bolstering the economy.
Internationally, Egypt’s economic reforms have drawn attention from financial institutions and investors. The World Bank notes that remittances to low- and middle-income countries are projected to remain resilient, with Egypt being a significant beneficiary due to its large diaspora community.
As Egypt continues to implement its reform agenda, the sustained increase in remittance inflows paints an optimistic picture for the country’s economic future. The government aims to leverage this momentum to strengthen its financial systems and ensure long-term stability.
