US Dollar Holds at 47.60 EGP After Egypt's 1% Rate Cut; Exchange Rates Across Banks on December 29, 2025

Cairo | EcoPulse24

The US dollar/EGP exchange rate remained relatively stable during trading on Monday, December 29, 2025, with only a slight increase of 6 piastres compared to Sunday’s close. This marks the first trading day after the Central Bank of Egypt’s historic decision to cut interest rates by 1%. The dollar was quoted at 47.58 EGP (buy) and 47.72 EGP (sell) at the central bank, while major banks averaged 47.61 EGP (buy) and 47.71 EGP (sell), staying below the 48 EGP threshold.

Minor variations were recorded among banks: state-run banks (National Bank of Egypt, Banque Misr, Banque du Caire) and Commercial International Bank posted unified rates of 47.61 EGP (buy) and 47.71 EGP (sell). The lowest buying rate was at Housing & Development Bank (47.52 EGP), followed by Crédit Agricole (47.59 EGP). These small differences reflect a stable, balanced official FX market with sufficient dollar liquidity.

The rate stability followed the Monetary Policy Committee’s decision on Thursday, December 25, 2025, to cut key rates by 100 basis points (1%), setting the overnight deposit rate at 20.00% and lending rate at 21.00%. This was the fifth cut in 2025 - totaling 7.25 percentage points - after reductions in April (2.25%), May (1%), August (2%), and October (1%).

The central bank explained the rate cut was in response to a marked drop in inflation: annual headline inflation fell to 12.3% in November 2025 from 28.3% in 2024, largely due to food inflation easing to 0.7% - its lowest in over four years - despite recent fuel price hikes. Core inflation was 12.5% in November, driven by non-food goods and services, but the overall trend remains downward.

The bank expects headline inflation to average around 14% in 2025 and continue to decline toward the 7% target by Q4 2026. Real GDP growth reached 5.0% in Q4 2025, led by non-oil manufacturing, trade, and telecommunications, supporting further disinflation in the short term.

On reserves, Egypt’s net international reserves hit a record $50.215 billion in November 2025 (up from $47.109 billion in December 2024). Net foreign assets in the banking sector rose to $22.66 billion in October, up from $5.225 billion at end-2024, bolstering investor confidence and ensuring FX market stability.

The central bank announced all Egyptian banks will close on Thursday, January 1, 2026, for the financial year-end (December 31, 2025), resuming operations Sunday, January 4, 2026. This comes as Egypt and the IMF reached a staff-level agreement on the fifth and sixth reviews of the economic reform program, paving the way for $2.7 billion in new funding, pending IMF Executive Board approval.

FAQ
Q1: What is today’s USD/EGP rate at the central bank? A: 47.58 (buy), 47.72 (sell) as of December 29, 2025.
Q2: What is the latest central bank rate decision? A: 1% rate cut on December 25, 2025; deposit rate now 20%, lending rate 21%.
Q3: How many times were rates cut in 2025? A: Five times, totaling 7.25% (725 basis points).
Q4: What is the current inflation rate? A: 12.3% headline, 12.5% core (November 2025).
Q5: What are Egypt’s foreign reserves? A: $50.215 billion (November 2025).
Q6: Why cut rates despite a higher dollar? A: The increase was marginal (6 piastres); the cut follows inflation’s drop from 28.3% to 12.3%, allowing for looser monetary policy to spur growth.
Q7: When do banks reopen after New Year? A: Sunday, January 4, 2026.
Q8: What is the 2026 inflation target? A: Near 7% by Q4 2026.