Egyptian Pound Firms as Dollar, Euro Slip in Late Trading

The Egyptian pound strengthened against major foreign currencies at the close of trading on Wednesday, with both the U.S. dollar and euro posting broad declines across most local banks, reflecting improving liquidity conditions and evolving monetary dynamics.

According to banking data, the U.S. dollar fell to EGP 51.97 for buying and EGP 52.07 for selling in leading institutions, including Banque Misr. The decline marks a continuation of recent easing in exchange rate pressures within Egypt’s banking sector.

The currency movement comes amid a modest increase in Egypt’s net international reserves, which rose to $52.83 billion at the end of March, up from $52.746 billion in February, according to the Central Bank of Egypt.

However, the value of gold holdings within the reserves declined to EGP 19.188 billion in March, compared to EGP 21.502 billion a month earlier, indicating shifts in reserve composition.

Despite the strengthening currency, some financial indicators presented a mixed picture. The net foreign assets of Egyptian banks dropped by more than $2 billion, reaching approximately $27.37 billion in February, down from $29.49 billion in January.

Meanwhile, the central bank reported a record net profit of EGP 202.15 billion by the end of February, up from EGP 187.37 billion in January, a monthly increase exceeding EGP 14.7 billion.

In its latest outlook, Moody's projected that Egypt’s government interest payments will peak in fiscal year 2026 at around 63% of revenues, equivalent to roughly 11% of GDP. The agency expects this ratio to gradually decline to 57% of revenues (10% of GDP) by 2028.

Moody’s also forecast a reduction in government debt to approximately 76% of GDP, compared to 82% in June 2025, supported by primary surpluses, sustained economic growth, and a gradual decline in borrowing costs.

Euro 

The euro also recorded declines against the Egyptian pound. At the National Bank of Egypt and Banque Misr, the European currency stood at EGP 61.18 for buying and EGP 61.45 for selling by the end of trading.

The synchronized decline in major foreign currencies suggests a short-term stabilization in Egypt’s foreign exchange market. However, underlying pressures, including external financing needs and debt servicing costs, remain key factors shaping the outlook for the pound in the months ahead.

Dollar Exchange Rate