Ahmed Kamel – Egypt Daily News
The Egyptian pound weakened toward EGP 53 against the US dollar on Tuesday, reversing a brief stabilization near EGP 52 ahead of the Eid holidays, according to Central Bank of Egypt (CBE) close-of-business data. The US dollar traded at EGP 52.62 for buying and EGP 52.76 for selling, marking a weekly increase of around EGP 0.33, or 0.6 percent, from last week’s close.
The pound has now depreciated by nearly 10 percent since late February, falling roughly EGP 4.76 from pre-US-Israeli-Iran conflict levels of EGP 47.9. Analysts attribute the decline to heightened geopolitical risk and capital outflows, with approximately $1 billion exiting Egyptian treasury bills in recent weeks. The currency briefly approached EGP 53 before recovering slightly.
Banks reported minor variations in exchange rates, with HSBC quoting some of the highest levels at EGP 52.85 for buying and EGP 52.75 for selling. Commercial International Bank (CIB), Suez Canal Bank, and Al Ahli Bank of Kuwait offered rates between EGP 52.65 and EGP 52.75, while Banque Misr, QNB Alahli, and National Bank of Egypt reported slightly lower levels of EGP 52.63–52.73.
The weaker pound has started to affect domestic prices. Vehicle prices in Egypt’s automotive market have increased between EGP 30,000 and EGP 200,000 due to reliance on imported components priced in foreign currencies.
Other currencies also reflected similar trends. The euro rose to EGP 60.99–61.17, up EGP 4.5 from pre-conflict levels, while the British pound traded at EGP 70.53–70.71, an increase of roughly EGP 5.7. Gulf currencies remained relatively stable but elevated: the Saudi riyal at EGP 14.01–14.05, UAE dirham at EGP 14.32–14.36, and Qatari riyal at EGP 14.37–14.47. The Kuwaiti dinar rose to EGP 171.6–172.1, Bahraini dinar to EGP 139.29–139.85, Omani riyal to EGP 136.67–137.07, and Jordanian dinar to EGP 74.12–74.52.
Overall, CBE data indicate that these currencies have appreciated between EGP 1.2 and EGP 14.9 against the pound since the outbreak of regional hostilities, underlining the ongoing pressure on Egypt’s exchange rates and potential inflationary effects on the domestic economy.
