Egyptian Pound Holds Firm as US Dollar Eases at Close of Trading

The U.S. dollar edged lower against the Egyptian pound at the close of trading on Sunday, with most banks across Egypt reporting stable exchange rates amid improving confidence in the country's macroeconomic outlook.

At the National Bank of Egypt and Banque Misr, the dollar was quoted at EGP 49.37 for buying and EGP 49.47 for selling, reflecting limited movement in the local foreign exchange market.

The euro traded with mixed performance across Egypt's banking sector by the end of Sunday's session. At both the National Bank of Egypt and Banque Misr, the European currency stood at EGP 56.06 for buying and EGP 56.56 for selling.

The currency's relative stability comes as international institutions continue to express optimism about Egypt's economic reforms. In a recent assessment, Fitch Ratings said the country's flexible exchange rate regime has played a key role in cushioning the economy against capital outflows while reinforcing the credibility of monetary and fiscal policies. The agency also maintained Egypt's sovereign credit rating at 'B' with a Stable Outlook, noting that regional geopolitical tensions have had a limited impact on the country's overall credit profile.

Separately, the Institute of International Finance (IIF) projected a gradual improvement in Egypt's fiscal position over the coming years. The institute expects government debt to decline to 82% of gross domestic product (GDP) in fiscal year 2026/27, down from 85.3% in 2025/26 and 86.8% in 2024/25, continuing a downward trend from 90.9% recorded in 2023/24.

The IIF also forecast Egypt's budget deficit to narrow to 4.9% of GDP in 2026/27, compared with 6.1% in the previous fiscal year. At the same time, the country is expected to post a primary fiscal surplus of 5.3% of GDP, up from 4% a year earlier.

While anticipating continued improvements in inflation, foreign exchange reserves and capital inflows, the institute expects economic growth to moderate slightly. Real GDP is projected to expand by 3.5% in fiscal year 2026/27, compared with an estimated 4.1% in 2025/26 and 4.4% in 2024/25, although growth would remain well above the 2.4% recorded in 2023/24.

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