Dollar Strengthens Against Egyptian Pound; Euro Shows Mixed Performance

The U.S. dollar recorded a notable uptick against the Egyptian pound at the close of trading on Sunday, rising across most banks operating in Egypt’s banking sector. 

The increase reflects ongoing pressure on the local currency amid shifting financial indicators and broader macroeconomic dynamics.

At the National Bank of Egypt (NBE) and Banque Misr, the dollar climbed to EGP 54.42 to buy and EGP 54.52 to sell, marking a modest but widespread increase compared to earlier levels.

Meantime, Egypt’s net international reserves rose slightly to $52.83 billion at the end of March 2026, up from $52.75 billion in February, according to recent central bank data. Despite this improvement, the composition of reserves revealed some pressure points.

The value of gold holdings within the Central Bank of Egypt’s reserves declined to 19.19 billion pounds, down from 21.50 billion pounds the previous month. This drop reflects global fluctuations in gold prices as well as valuation adjustments.

Meanwhile, the Central Bank reported a record net profit of EGP 202.15 billion by the end of February 2026, compared to EGP 187.38 billion in January, an increase exceeding EGP 14.7 billion in a single month.

In contrast, net foreign assets held by Egyptian banks dropped by more than $2 billion, reaching approximately $27.37 billion (1.313 trillion pounds) in February, down from $29.49 billion (1.385 trillion pounds) in January. The decline underscores continued external liquidity pressures.

According to projections by Moody’s, Egypt’s government interest payments are expected to peak in fiscal year 2026 at around 63% of revenues, equivalent to roughly 11% of GDP. However, the agency anticipates gradual easing, with interest payments declining to about 57% of revenues (10% of GDP) by 2028.

Moody’s also forecasts a reduction in Egypt’s government debt-to-GDP ratio to approximately 76%, down from 82% in June 2025. This improvement is expected to be driven by sustained primary surpluses, economic growth, and a gradual reduction in borrowing costs.

Euro

Unlike the dollar, the euro exhibited mixed performance across banks at the close of trading. At Banque Misr, the European currency was priced at EGP 62.66 to buy and EGP 62.97 to sell, reflecting a state of fluctuation rather than a clear directional trend.