Ahmed Kamel – Egypt Daily News
The U.S. dollar declined to its lowest level against the Egyptian pound since May 2024, marking a notable development in the local foreign exchange market nearly a year after Egypt liberalized its exchange rate regime.
At the National Bank of Egypt, the dollar fell to EGP 46.92 for buying and EGP 47.03 for selling, its weakest level since the currency flotation on March 6, 2024. Similar levels were recorded across a wide range of banks, reflecting a broad-based easing of dollar prices rather than isolated fluctuations.
At SAIB Bank, the U.S. currency traded at EGP 46.90 for buying and EGP 47.00 for selling, while Faisal Islamic Bank and Crédit Agricole Egypt quoted the dollar at EGP 46.88 for buying and EGP 46.98 for selling. In other major lenders, including the Arab African International Bank, Housing and Development Bank, Industrial Development Bank, and Commercial International Bank Egypt, the dollar stood slightly higher at around EGP 47.00 for buying and EGP 47.10 for selling.
The United Bank and First Abu Dhabi Bank Egypt also recorded the dollar at EGP 46.90 for buying and EGP 47.00 for selling, underscoring the narrowing spread and growing price convergence across the banking sector.
The decline in the dollar comes amid improved foreign currency liquidity conditions, supported by stronger inflows from tourism, remittances, portfolio investments, and foreign direct investment, as well as continued coordination between fiscal and monetary authorities. Market observers also point to the easing of speculative demand for hard currency following the shift to a more flexible exchange rate framework.
Since the March 2024 flotation, the Central Bank of Egypt has emphasized a market-driven exchange rate, allowing supply and demand dynamics to play a greater role in price discovery. The recent appreciation of the pound, while modest, is seen by analysts as a sign of increased confidence and relative stability in the foreign exchange market.
However, economists caution that the sustainability of the pound’s gains will depend on maintaining steady foreign currency inflows, managing external debt obligations, and sustaining economic growth. External factors, including global interest rate trends and investor risk appetite toward emerging markets, are also expected to influence the pound’s performance in the coming months.
For now, the dollar’s retreat to its lowest level in nearly a year represents a positive signal for inflation dynamics and import costs, offering cautious optimism for businesses and consumers alike.
