Cairo: Remittance inflows from Egyptians working abroad rose 40.5 percent year on year in 2025, reaching $41.5 billion, up from about $29.6 billion in 2024, marking the highest recorded inflow, according to a Central Bank of Egypt (CBE) statement on Monday.

According to State Information Service Egypt, during the first half of fiscal year 2025/2026, remittances increased 29.6 percent between July and December 2025, reaching $22.1 billion, up from $17.1 billion in the same period of 2024.

Monthly inflows are also trending upward, rising 24 percent in December 2025 to $4 billion, compared with around $3.2 billion in December 2024, the CBE said.

The increase follows a series of corrective measures introduced by the CBE in March 2024, including a sharp devaluation of the local currency and a six-percentage-point interest rate hike, which narrowed gaps in the domestic hard-currency market and improved formal remittance inflows.

Remittances act as a shock absorber for Egypt's economy, supporting household consumption and providing a buffer during periods of stress. They are among the country's largest and most stable sources of foreign currency, alongside tourism revenues and Suez Canal earnings.

These inflows have helped bolster foreign reserves and ease pressure on the widening balance of payments (BOP) deficit, which reached $1.6 billion in the first quarter of FY2025/2026, up about 61.4 percent from $991.2 million a year earlier.

In the second quarter of 2025, remittances rose 29.8 percent to around $10.8 billion, compared with $8.3 billion in the same period in 2024.