Ahmed Kamel – Egypt Daily News
In a sign of improving dollar liquidity in Egypt’s banking system, the Egyptian pound has surged to its strongest level against the U.S. dollar in nearly 10 months. On Wednesday, the pound climbed to EGP 48.30 per dollar for buying and EGP 48.40 for selling.
This marked appreciation comes on the heels of several key decisions by the Central Bank of Egypt (CBE) aimed at easing currency controls and restoring confidence in the country’s monetary policy. Chief among them was an increase in the foreign currency allowance for Egyptian travelers raising the limit from $5,000 to $10,000, in line with the maximum amount permitted for outbound travel from Egypt.
Multiple banks implemented the changes on Tuesday, also announcing a reduction in foreign exchange markup fees on international card transactions from 5% down to 3%. These adjustments are part of broader central bank directives to relax restrictions on the use of credit cards abroad and signal growing confidence in the country’s foreign exchange reserves.
The immediate impact was felt in the foreign exchange market, where the dollar slipped against the pound, breaking through a key psychological barrier. The pound’s rise is seen as a positive indicator of Egypt’s ability to stabilize its currency following a period of sustained depreciation and economic strain.
Analysts say the move to ease currency controls for travelers is a direct reflection of the central bank’s growing confidence in Egypt’s foreign currency reserves and its ability to meet dollar demand without resorting to inflated exchange rates or parallel markets.
Supporting this positive momentum, the CBE recently reported that Egypt’s net international reserves rose to $49.036 billion at the end of July 2025, up from $48.700 billion in June a monthly increase of $336 million. This marks a continuing trend of reserve accumulation that provides a critical buffer against external shocks and currency volatility.
Additionally, remittance flows from Egyptians working abroad have seen a dramatic recovery. Between July and May of the 2024/2025 fiscal year, remittances surged by an impressive 69.6%, reaching approximately $32.8 billion, up from $19.4 billion during the same period a year earlier. These inflows have played a vital role in shoring up the balance of payments and easing pressure on the pound.
Economists suggest that the recent measures are likely to have a cascading effect on market sentiment, encouraging more dollar inflows through official channels and curbing black-market speculation. The strengthened pound also comes at a time when Egypt is attempting to attract foreign investment, reduce inflationary pressures, and ensure broader macroeconomic stability amid ongoing reforms supported by international lenders.
While challenges remain including debt servicing, structural reforms, and global economic uncertainties the recent developments signal a more optimistic outlook for the Egyptian economy. If sustained, this upward momentum could help Egypt regain credibility in international markets and boost investor confidence heading into 2026.
