Dollar interbank trading in Egypt surged to an average of $880 million per day during the past week, far exceeding typical daily volumes of $150–250 million, according to banking sources.
The jump in trading activity reflects heightened buying and selling pressure, as market participants respond to recent fluctuations in the Egyptian pound.
The Egyptian pound experienced significant swings over the week. After reaching an 18-month high, with the U.S. dollar falling below EGP 47 for the first time since May 2024, the currency retraced, losing roughly 33 piastres over the past two days.
Analysts note that this volatility has fueled intense activity in the interbank market, as traders adjust positions amid a rapidly changing exchange-rate environment.
The trading surge comes despite significant inflows into the secondary government debt market. Since Sunday, net “hot money” inflows of around $1 billion have entered the market, with Wednesday alone accounting for approximately $845 million.
These inflows appear to have temporarily supported liquidity, yet market sentiment remains sensitive to currency fluctuations, keeping interbank turnover at unusually high levels.
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