Dollar, Euro Edge Higher Against Egyptian Pound

The U.S. dollar and the euro rose against the Egyptian pound at the close of trading on Wednesday, with most major banks in Egypt reporting higher exchange rates in a session that reflected steady demand for foreign currency across the banking sector.

The dollar reached its highest quoted level at Abu Dhabi Islamic Bank, where it was priced at EGP 50.20 for buying and EGP 50.30 for selling. Other banks traded the greenback within a narrow range, underscoring the relative stability of pricing across the regulated market. 

At National Bank of Egypt (NBE) and Banque Misr, the dollar closed at EGP 50.14 for buying and EGP 50.24 for selling, levels mirrored by Commercial International Bank (CIB) and several other lenders.

The euro followed a similar upward trajectory, registering what bankers described as an all-time high across banks. At Abu Dhabi Islamic Bank (ADIB), the European currency stood at EGP 58.11 for buying and EGP 58.58 for selling, marking the session’s highest selling price. In most other banks, including the NBE and Banque Misr, the euro hovered around EGP 58.04 for buying and ranged between EGP 58.41 and EGP 58.56 for selling by the end of the trading day.

The upward movement in foreign currencies comes amid mixed but generally supportive macroeconomic indicators released by the Central Bank of Egypt (CBE). According to the latest data, total foreign currency deposits in the banking sector declined to the equivalent of EGP 2.948 trillion at the end of January 2026, compared with EGP 3.003 trillion in December 2025, signaling a modest monthly contraction.

At the same time, the Central Bank reported a notable increase in its net foreign assets, which rose by $4 billion in January to reach approximately $29.5 billion, equivalent to around EGP 1.385 trillion, up from $25.5 billion at the close of 2025. The improvement reflects stronger external inflows and enhanced liquidity buffers.

Remittances from Egyptians working abroad provided one of the most significant boosts to foreign currency resources. The Central Bank disclosed that remittance inflows surged by 40.5% in 2025 to reach a record $41.5 billion, compared with $29.6 billion in 2024, marking the highest annual level ever recorded.

Additional support has come from Gulf investment flows, as Egypt recently received about $3.5 billion tied to a broader $7.5 billion commitment from Qatar for a major real estate and tourism development project in the North Coast’s Al-Alamein area. 

Despite these positive inflow dynamics, Wednesday’s exchange rate gains suggest that demand for foreign currency remains firm. Market observers say the trajectory of the pound in the coming period will depend largely on the sustainability of remittance growth, the pace of foreign direct investment, tourism revenues, and broader global dollar movements amid geopolitical tensions, and the conclusion of the IMF's 5th, and 6th review.