Egyptian Pound Weakens as Dollar, Euro Rise at Week’s Close

The Egyptian pound came under renewed pressure at the close of trading on Thursday, as both the U.S. dollar and the euro recorded gains across most banks, reflecting persistent demand for foreign currency and broader macroeconomic strains.

At the National Bank of Egypt (NBE) and Banque Misr, the dollar climbed to EGP 53.57 for buying and EGP 53.67 for selling, marking a collective uptick in the banking sector. The euro also advanced, with buying rates reaching EGP 62.44 and selling prices nearing EGP 62.90.

The currency movement comes despite a strong rebound in remittance inflows, one of Egypt’s key sources of hard currency. According to the Central Bank of Egypt, transfers from Egyptians working abroad rose by 25.7% year-on-year in February to approximately $3.8 billion, compared to $3.0 billion in the same month of 2025.

Over the longer term, remittances surged by 28% during the July–February period of the 2025/26 fiscal year, reaching $29.4 billion, up from $23.0 billion a year earlier, highlighting continued resilience in external inflows.

However, mounting external obligations continue to weigh on the currency. Egypt paid $6.442 billion in external debt servicing during the first quarter of the current fiscal year, down from $7.952 billion in the same period a year earlier. The payments included $2.078 billion in interest and $4.363 billion in principal repayments.

Despite the slight decline in near-term debt service, Egypt’s total external debt edged higher to $163.7 billion by the end of September 2025, compared to $161.230 billion in June.

At the same time, foreign investor appetite for local debt instruments appears to be strengthening. Holdings of treasury bills by non-residents rose to the equivalent of EGP 2.525 trillion by the end of January 2026, up from EGP 2.449 trillion a month earlier, signaling renewed confidence in Egypt’s high-yield debt market.

Still, rating agency Standard & Poor's has flagged ongoing vulnerabilities. The agency estimates that Egypt faces $4.2 billion in external debt repayments during the 2025/26 fiscal year, including $1.2 billion due in April alone. Further repayments are projected at $2.9 billion in 2026/27, $3.4 billion in 2027/28, and $1.3 billion in 2028/29.

In a stark indication of fiscal strain, interest payments accounted for 82% of government revenues and fully consumed tax revenues during the first nine months of the fiscal year, underscoring the heavy burden of debt servicing on public finances.

Analysts say the combination of rising external liabilities, currency pressures, and global uncertainty continues to challenge Egypt’s financial outlook, even as inflows from remittances and foreign investments provide partial support.

With volatility persisting in global markets, the trajectory of the Egyptian pound is likely to remain closely tied to external financing conditions, policy responses, and the sustainability of foreign currency inflows in the months ahead.