Egyptian Pound Strengthens as Dollar, Euro Edge Lower at Wednesday Close

The Egyptian pound strengthened modestly against both the U.S. dollar and the euro at the close of trading on Wednesday, with most banks reporting slightly lower exchange rates for the two currencies.

The U.S. dollar traded at EGP 49.08 for buying and EGP 49.18 for selling at both Banque Misr and the National Bank of Egypt, reflecting a marginal decline from earlier levels.

The euro also weakened against the Egyptian currency. At Midbank, the euro was quoted at EGP 55.85 for buying and EGP 56.14 for selling, while the Arab African International Bank posted rates of EGP 55.87 for buying and EGP 56.18 for selling.

The currency movement comes as international institutions continue to express confidence in Egypt's macroeconomic outlook.

In a recent report, Fitch Ratings said Egypt's flexible exchange rate regime has played a key role in cushioning the economy against foreign capital outflows, helping preserve policy credibility and limiting the impact of regional geopolitical tensions, including the conflict involving Iran, the United States, and Israel. The agency affirmed Egypt's sovereign credit rating at 'B' with a Stable Outlook.

Meanwhile, the Institute of International Finance (IIF) projected that Egypt's government debt will continue to decline over the coming years, falling to 82% of GDP in fiscal year 2026/27, down from 85.3% in 2025/26, 86.8% in 2024/25, and 90.9% in 2023/24.

The IIF also expects Egypt's fiscal position to improve, forecasting the overall budget deficit to narrow to 4.9% of GDP in 2026/27, compared with 6.1% a year earlier. The country's primary surplus is projected to increase to 5.3% of GDP, up from 4% in fiscal year 2025/26.

On the growth front, the institute forecasts a moderation in Egypt's economic expansion, with real GDP expected to grow 3.5% in 2026/27, compared with 4.1% in 2025/26 and 4.4% in 2024/25. Despite the slower pace, growth would remain well above the 2.4% recorded in 2023/24.

The report also highlighted expectations for continued easing in inflation, lower public debt levels, stronger foreign exchange reserves, and sustained capital inflows, factors that are expected to support Egypt's economic stability over the medium term.