Expatriate remittances to Egypt, a vital source of foreign currency, surged by 52% year-on-year to reach $30 billion in 2024, as reported by the central bank.
The substantial increase in remittances was largely driven by Egypt’s economic reforms introduced in March 2024, along with the implementation of a flexible exchange rate system, according to the State Information Service.
In December 2024, remittances hit a record high of $3.2 billion, up from $1.6 billion in the same month the previous year, marking the largest monthly inflow ever recorded, as reported by Egypt Today.
The country’s decision to devalue its currency in 2023, prompted by foreign exchange shortages linked to reduced Suez Canal revenues and rising food import costs due to the Ukraine war, also contributed to this increase in remittances.
During the first half of the 2024/2025 fiscal year (starting July 1), remittances reached $17 billion, an 81% rise from $9 billion in the previous year.
As part of its efforts to strengthen the economy, Egypt is also preparing to announce a tax relief package aimed at boosting transparency and encouraging foreign direct investment. In September 2024, Egypt’s finance minister, Ahmed Kouchouk, introduced a series of tax reforms designed to enhance the country’s investment climate. Additionally, in February 2024, the Egyptian government approved measures to eliminate tax and fee exemptions for state-owned enterprises, in compliance with conditions set by the International Monetary Fund (IMF).
