Recovery signs for Egyptian pound and stock market amid economic challenges

By the close of Tuesday’s trading session, both the Egyptian pound (EGP) and the Egyptian Exchange (EGX) showed signs of recovery after recent declines.

The EGP initially hit a low of EGP 51.4 against the US dollar on Monday, marking its lowest level since last year’s devaluation. It then slipped further to a record low of EGP 51.53 before rebounding to EGP 51.27 by 3 PM Cairo time, indicating a potential stabilization.

The EGX also saw positive movement following a significant drop on Sunday and a slight rally on Monday. By the end of Tuesday, all market indices were in the green, with the EGX 30 benchmark index rising by 0.64%, fueled by increased purchasing from Egyptian and Arab investors.

This recent market volatility remains largely influenced by US trade policies, especially the tariff hikes introduced under the Trump administration. These measures have had a ripple effect on global markets, indirectly impacting Egypt's trade and economic stability.

The potential for another tariff increase by the US government tomorrow has further heightened uncertainty.

Despite the challenges, Egypt managed to receive the lowest possible trade levy of 10 percent from the US, unlike some of its regional counterparts.

Egypt’s trade with the US has evolved over the past year. According to data from the Observatory of Economic Complexity (OEC), in January 2025, the United States exported $776 million to Egypt and imported $207 million from the country, resulting in a positive trade balance of $570 million.

According to the Central Agency for Public Mobilization and Statistics (CAPMAS), from January to November 2024, Egypt’s imports from the US reached $6.75 billion, a 39.6 percent increase from $4.8 billion in the same period of 2023.

Key imports included mineral oils, fuels, machinery, and vehicles. In parallel, Egypt’s exports to the US grew by 13.9 percent year-on-year, totaling $2 billion in 2024 compared to $1.8 billion in 2023.

In February, US President Donald Trump warned that BRICS economic bloc—including Egypt—could face tariffs as high as 100 percent if they challenged the dominance of the US dollar.