Remittances from Egyptians working abroad surged 20.4% year-on-year to a record $13 billion in July–September 2026, the first quarter of FY2026/27, the Central Bank of Egypt (CBE) announced on November 10, strengthening a major source of foreign currency as the country continues to face external financing pressures.
The inflows rose from approximately $10.8 billion in the same quarter of 2025, an increase of $2.2 billion.
Total remittances reached a record $38.2 billion during the first nine months of 2026, compared with $30.2 billion a year earlier, representing growth of approximately 26.5%.
The figures extend a sustained recovery in overseas transfers following Egypt’s March 2024 exchange-rate reforms, which allowed the Egyptian pound to respond more closely to market supply and demand and narrowed the gap between official and parallel-market exchange rates.
The reforms helped restore confidence in formal banking channels, encouraging Egyptians working abroad to transfer their earnings through banks and other regulated financial institutions rather than informal currency markets.
The recovery has also coincided with improved foreign-exchange availability following major investment inflows, including the Ras El-Hekma development agreement, and financing under Egypt’s International Monetary Fund programme.
These developments helped ease foreign-currency shortages and import financing backlogs, improving conditions for businesses requiring dollars to pay overseas suppliers and contributing to renewed confidence in the banking system.
Competitive Egyptian-pound savings certificates and foreign-currency deposit products offered by local banks have provided additional incentives for expatriates, particularly those working in Gulf Cooperation Council (GCC) countries, to transfer savings to Egypt.
The expansion of digital financial services has also facilitated remittances. Greater integration between international money transfer networks, local digital wallets, Egypt’s Instant Payment Network (IPN) and direct bank transfers has made formal transactions more accessible and reduced procedural barriers.
The latest quarterly performance follows record remittances of $47.3 billion during FY2025/26, up 29.6% from $36.5 billion in the preceding fiscal year, according to the CBE.
Remittances remain one of Egypt’s largest sources of foreign-exchange earnings, alongside tourism receipts, exports, Suez Canal revenues and foreign investment.
Unlike external borrowing, remittances do not create additional debt obligations, making them particularly important as Egypt manages its merchandise trade deficit and external financing requirements.
The inflows help finance imports and other international payments while supporting foreign-currency liquidity within the banking system. Their contribution is especially significant given Egypt’s dependence on imported commodities and its continuing need for foreign exchange to meet external obligations.
Stronger remittances can also support the country’s balance-of-payments position and the availability of foreign assets within commercial banks.
However, their effect on the CBE’s net international reserves depends on other financial flows, including foreign investment, external borrowing, debt repayments and changes in import demand. Higher remittances therefore do not necessarily translate into an equivalent increase in official reserves.
The sustainability of remittance growth will depend partly on exchange-rate conditions, confidence in formal banking channels and economic developments in countries employing Egyptian workers, particularly Gulf economies.
Maintaining strong inflows would help ease pressure on Egypt’s external accounts and support financial stability, although remittances alone cannot eliminate the country’s broader external financing challenges.
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