Why is the Egyptian pound gaining ground? Experts weigh in

The currency, which peaked at EGP 51.7 per dollar in April 2024, now trades around 48.4 — an improvement of roughly 6 percent.

The Central Bank of Egypt (CBE) said the dollar’s value has fallen nearly 6.5 percent since March, signalling improved liquidity despite regional tensions and mounting external financing needs.

From peak to retreat
 

 Banking expert Ahmed Shawky told Ahram Online that the dollar’s surge to EGP 51.73 last September to “was driven by multiple pressures, most notably increased demand for dollars and regional political tensions that pushed some hot-money investors to exit emerging markets fearing a decline in their holdings’ value.”

He said the CBE’s adoption of a flexible exchange rate“was decisive in absorbing the shock, allowing the currency to move within a five percent band up or down.”

He added: “This preserved investor confidence and prevented further deterioration. Indeed, the US dollar retreated to EGP 48.37, a decline of roughly 6.5 percent over a short period, signaling the market’s enhanced ability to absorb shocks.”