Record Dollar Inflows Boost Egyptian Pound to Strongest Level Since March 2024 Float

Cairo | EcoPulse24

The Egyptian pound has achieved its strongest performance against the US dollar since the March 2024 flotation, driven by a notable increase in dollar liquidity announced by the Egyptian government, improved foreign reserve indicators, and exchange market stability within the banking sector.

Market data indicated that the highest exchange rates for the dollar were recorded at National Bank of Egypt, Suez Canal Bank, Abu Dhabi Islamic Bank – Egypt, and Export Development Bank of Egypt at 47.17 EGP for buying and 47.27 EGP for selling. Conversely, Crédit Agricole Egypt posted the lowest rates at 47.13 EGP for buying and 47.23 EGP for selling, matching the Central Bank of Egypt's buying rate, while the official selling rate stood at 47.27 EGP.

At other banks, including Banque Misr, Bank of Alexandria, Housing and Development Bank, United Bank, and Banque du Caire, the dollar stabilized at 47.15 EGP for buying and 47.25 EGP for selling, reflecting tight pricing and reduced rate gaps across banks.

This performance extends the strong gains seen by the pound in 2025, with a 6.7% appreciation since the start of the year, benefiting from improved dollar inflows, particularly from remittances, and restored liquidity in the banking system.

On the reserves front, the Central Bank of Egypt announced net foreign reserves rose to $51.452 billion at the end of December, up from $50.216 billion in November 2025. Gold holdings within reserves increased by $914 million in December to reach $18.17 billion, with an annual increase of nearly $7.5 billion, offsetting a $3.2 billion decline in foreign currency balances over the past year.

Analysis:
The pound's rise reflects the Egyptian exchange market's transition to a phase of structural stabilization supported by real inflows rather than temporary administrative measures. Reserve growth, especially in gold, provides greater monetary policy flexibility and reduces the currency's vulnerability to external shocks. With improved foreign currency sources, the market appears on a path of gradual stability that could enhance investment confidence, provided monetary discipline is maintained and hard currency inflows continue without sudden funding pressures.