Dollar, Euro Rise Against Egyptian Pound at Market Close

The US dollar strengthened against the Egyptian pound at the close of trading on Thursday, with most banks across Egypt posting higher exchange rates, extending the currency's recent gains.

At the National Bank of Egypt (NBE) and Banque Misr, the dollar was quoted at EGP 49.65 for buying and EGP 49.75 for selling by the end of the session.

The euro also advanced against the Egyptian pound, with both lenders offering the European currency at EGP 56.69 for buying and EGP 56.96 for selling.

The latest move in Egypt's foreign exchange market comes as the country's external financial position continues to show signs of improvement.

Remittances from Egyptians working abroad climbed 31.2% during the first eleven months of the 2025/26 fiscal year (July–May), reaching approximately $43.1 billion, compared with $32.8 billion during the corresponding period a year earlier.

On a monthly basis, remittance inflows increased 13.5% in May 2026, rising to around $3.9 billion from $3.4 billion in May 2025.

Meanwhile, the Central Bank of Egypt reported that the country's net international reserves rose to $55.1 billion at the end of June 2026, up from $53.134 billion a month earlier, marking another increase in Egypt's foreign reserve holdings.

Despite the overall improvement, the central bank said the value of gold reserves within the foreign exchange portfolio declined to $16.784 billion in June from $18.776 billion in May. Holdings of Special Drawing Rights (SDRs) also edged lower to $444 million, compared with $448 million in the previous month.

Separately, Fitch Ratings said Egypt's flexible exchange rate regime has helped cushion the impact of foreign capital outflows, reinforcing confidence in the country's economic policy framework. The agency noted that exchange rate flexibility also mitigated the effects of geopolitical tensions stemming from the conflict involving Iran, the United States, and Israel, supporting Egypt's sovereign credit rating of 'B' with a Stable Outlook.

The Institute of International Finance (IIF) expects Egypt's economy to experience a modest slowdown in growth during the 2026/27 fiscal year, while forecasting continued declines in inflation and government debt alongside stronger foreign exchange reserves and sustained capital inflows.

According to the IIF, Egypt's real GDP is projected to expand by 3.5% in FY2026/27, compared with an estimated 4.1% in FY2025/26 and 4.4% in FY2024/25. Even so, the forecast remains well above the 2.4% growth recorded in FY2023/24.