Dollar, Euro Slip Against Egyptian Pound in 1st Decline After Days of Gains

The U.S. dollar and euro recorded a modest decline against the Egyptian pound at the close of trading on Wednesday, signaling a pause in the recent currency rally across Egypt’s banking sector.

The dollar edged lower across most major banks, with average buying prices hovering around EGP 53.57–53.60 and selling prices between EGP 53.67–53.70.

 The dip, while limited, marks the first downward correction in days, suggesting a temporary stabilization in the foreign exchange market.

A similar trend was observed for the euro, which also weakened slightly. Buying rates settled near EGP 61.85–61.91, while selling prices ranged from EGP 62.30 to 62.36 across leading financial institutions.

The marginal decline comes amid improving foreign currency liquidity indicators. According to recent data, remittances from Egyptians abroad rose sharply by 21% in January 2026, reaching approximately $3.5 billion compared to $2.9 billion during the same month last year. This surge continues to provide critical support to Egypt’s external balance.

Meanwhile, credit rating agency Fitch Ratings noted that Egyptian banks now hold stronger foreign currency liquidity buffers compared to 2022. Net foreign assets in the banking sector climbed to approximately $14.5 billion by the end of January 2026, the highest level recorded in over a decade.

Additional backing has come from foreign direct investment inflows. Qatar-based Qatari Diar recently injected around $3.5 billion into a luxury real estate and tourism development project in Egypt’s North Coast region, part of a broader $7.5 billion investment commitment. Such inflows are expected to ease pressure on the currency and strengthen reserves.

Despite the short-term relief, forecasts indicate continued structural pressure on the Egyptian pound. A recent report by S&P Global projects a gradual depreciation trajectory for the pound against the dollar through 2029.

The report estimates the exchange rate could average EGP 50.2 per dollar in the current fiscal year, rising to EGP 58.3 next year, before reaching EGP 61.8 pounds by mid-2028 and approximately EGP 64.5 by June 2029. Persistent inflation risks and regional geopolitical tensions are cited as key drivers behind this outlook.