Dollar Declines Against Egyptian Pound to 49.60

Egypt’s currency market witnessed a broad decline in the US dollar exchange rate against the Egyptian pound by the end of trading on Thursday, with several banks reporting lower levels across buying and selling rates.

The movement comes as Egypt’s foreign exchange market continues to adjust to regional and global economic developments. A recent report by Fitch Ratings highlighted that the flexibility of Egypt’s exchange rate has played a key role in absorbing the impact of foreign capital outflows, supporting confidence in economic policies and limiting the effects of regional tensions linked to the Iran-US-Israel conflict on Egypt’s sovereign rating, which remains at “B” with a stable outlook.

Meanwhile, the Institute of International Finance expects Egypt’s government debt to decline to around 82% of GDP in fiscal year 2026/27, compared with 85.3% in 2025/26 and 86.8% in 2024/25, after reaching 90.9% in 2023/24.

The institute also projected an improvement in Egypt’s budget deficit, forecasting it to narrow to 4.9% of GDP in 2026/2027, down from 6.1% in the previous fiscal year.

It further expects Egypt to record a primary surplus of approximately 5.3% of GDP, compared with 4% in 2025/2026.

The report indicated that the Egyptian economy may experience a slight moderation in growth during fiscal year 2026/27, alongside continued declines in inflation rates and government debt, improved foreign reserve conditions, and stronger capital inflows.

Real GDP growth is forecast to reach 3.5% in 2026/27, compared with an expected 4.1% in 2025/2026 and 4.4% in 2024/2025, while remaining above the 2.4% growth recorded in 2023/24.

Dollar Exchange Rate:

At the National Bank of Egypt (NBE), the dollar recorded EGP 49.47 for buying and EGP 49.57 for selling.

The dollar, at Banque Misr stood at EGP 49.47 for buying and EGP 49.57 for selling.

Euro Falls Across Several Egyptian Banks by End of Thursday:

The euro also recorded a general decline against the Egyptian pound on Thursday, with several banks reporting lower exchange rates at the close of trading.

At the Egyptian Gulf Bank (EG), the euro reached EGP 56.10 for buying and EGP 56.39 for selling.

The euro at the Arab International Bank (AIB) was recorded at EGP 56.09 for buying and EGP 56.38 for selling.

An illustration of appreciation of the Egyptian Pound against the US Dollar. File Photo