US Dollar Drops in Egypt as Pound Strengthens on Rising Foreign Currency Inflows

The US dollar fell sharply against the Egyptian pound during trading on Sunday, reflecting improved foreign currency inflows and increased liquidity in Egypt’s banking sector.

The dollar declined by 1.7% in transactions at the National Bank of Egypt, marking one of its steepest daily drops in recent months. The US currency slipped to the 51-pound level in several Egyptian banks for the first time in an extended period, as the pound continued to benefit from rising dollar supply in the local market.

According to data compiled by Bloomberg, the highest recorded exchange rate for the dollar reached 51.95 pounds for purchase and 52.05 pounds for sale at Abu Dhabi Islamic Bank.

Meanwhile, some banks, including First Abu Dhabi Bank, Emirates NBD, and Faisal Islamic Bank, offered the lowest rate at around 51.00 pounds for purchase and 51.10 pounds for sale.

At a broader group of banks, including the National Bank of Egypt, Banque Misr, Arab African International Bank, Suez Canal Bank, Mashreq, MIDBANK, United Bank, Commercial International Bank affiliates, and Kuwait Finance House, the dollar averaged around 51.07 pounds for purchase and 51.17 pounds for sale.

At the Central Bank of Egypt, the dollar was recorded at 51.05 pounds for purchase and 51.19 pounds for sale.

The recent appreciation of the Egyptian pound comes amid what officials describe as a notable increase in foreign currency inflows, supported by strong remittance flows from Egyptians working abroad and improved conditions in the domestic banking system.

Egypt’s foreign exchange reserves have also reached record levels. The Central Bank of Egypt reported net international reserves of $53.134 billion in May, compared with $53.009 billion in April, marking an increase of $125 million.

By the end of May 2026, reserves reached their highest level in the country’s history, supported by diversified inflows across currencies and assets.

Gold holdings rose by 3,000 ounces during May, bringing total reserves to 4.167 million ounces. However, fluctuations in global gold prices led to a valuation decline of $425 million, reducing the gold component to $18.77 billion. This was offset by a $656 million increase in foreign currency assets, which helped push overall reserves higher.

Remittances from Egyptians working abroad also recorded exceptional growth. During the first nine months of the 2025/26 fiscal year (July to March), remittances rose by 32% year-on-year to approximately $34.9 billion, compared with $26.4 billion in the same period a year earlier.

On a full-year basis, remittances reached a record $41.5 billion in 2025, up 40.5% from $29.6 billion in 2024, marking the highest level ever recorded.