Remittances from Egyptians residing abroad continued to rise in February, climbing 130.8% y-o-y to around USD 3 bn — the highest figure recorded during the month — according to a statement (pdf) from the Central Bank of Egypt. February marks the twelfth consecutive month of y-o-y remittance growth, according to the CBE. The figure was also up on a monthly basis, rising from the USD 2.9 bn recorded in January.

Remittance inflows began to return to official channels after the float of the EGP back in March 2024, which effectively put an end to the parallel market that had pushed remittance flows through unofficial channels. Remittances have risen by 72.4% to record USD 32.6 bn transferred since the float of the currency, according to the CBE data.

Remittances are expected to continue their upward trajectory throughout the year, with Morgan Stanley forecasting USD 32 bn in inflows during the current fiscal year.

This could also be the year remittance flows surpass their pre-FX crisis peak. Last fiscal year saw remittances hitting only USD 22.1 bn as the parallel market pushed remittance flows through unofficial channels, down from a USD 31.4 bn peak in FY 2020/21.

February’s figures are a testament to a number of things — “firstly, it shows the success of the reforms taken by the CBE in March 2024,” banking expert Mohamed Abdel Aal told EnterpriseAM. “It also shows the success of the flexible exchange rate policy in achieving balance between supply and demand, and achieving stability and reassurance due to the absence of any currency shortages,” he said.

Also playing a part: “The attractiveness of Egyptian savings instruments since the decision is also one of the most important factors behind the increase in remittances from Egyptians working abroad, and we expect them to remain attractive for Egyptian expats down the line,” Abdel Aal continued. “The growth in remittances is also an indication of confidence in Egypt’s banking system, and in the Egyptian economy as a whole,” he concluded.

The country’s GDP is heavily impacted by the level of remittance inflows: Money sent from abroad is expected to have made up around 8% of the country’s entire GDP in 2024, up from 5% in 2023 and 6.1% in 2022. In terms of current account inflows, Egyptians abroad sending FX home are expected to account for 35% of inflows in 2024, up from the 25% recorded the year prior, but still a long way off the 45% recorded in 2020.

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