Egyptian Pound Slides as Dollar Nears EGP 53 in Trading

The Egyptian pound came under renewed pressure on Thursday as the U.S. dollar surged to near-record levels, approaching EGP 53 in early trading and signaling a fresh wave of currency volatility across the local banking system.

According to official data released by the Central Bank of Egypt, the dollar was quoted at EGP 52.75 for buying and EGP 52.88 for selling. However, trading screens across several major banks reflected a broader upward movement, with the greenback stabilizing at around EGP 52.84 for sale in early and mid-session.

The sharp rise marks the highest level recorded since the end of the recent Eid holiday, underscoring persistent demand for foreign currency and ongoing strain on the local exchange market.

The uptick was not limited to the dollar. Other major currencies also posted gains against the Egyptian pound. The euro traded near EGP 60.96, while the British pound approached EGP 70.48, reflecting global currency strength alongside domestic pressures.

Gulf currencies, which are closely watched in Egypt due to remittance flows, also edged higher. The Saudi riyal hovered around EGP 14.09, and the UAE dirham reached approximately EGP 14.40. Meanwhile, the Kuwaiti dinar, traditionally one of the strongest currencies, rose above EGP 172.5.

Analysts attribute the latest move to a combination of external and internal factors, including global market uncertainty, rising commodity prices, and continued pressure on dollar liquidity in the Egyptian eocnomy. The surge in oil prices, amid escalating geopolitical tensions in the Middle East has further complicated the outlook for import-dependent economies such as Egypt.

Market participants are now closely monitoring end-of-week trading for signs of stabilization or further escalation, particularly as demand for the dollar remains elevated among importers and investors.

With the pound facing sustained depreciation pressures, attention is increasingly turning to potential policy responses and whether monetary authorities will intervene to curb volatility or allow further exchange rate flexibility in the days ahead.