Egypt’s Currency Plunges to Historic Low as Foreign Funds Exit. Cairo, Egypt — Egypt’s national currency, the pound, reached a historic low on Sunday, dipping below 52 pounds to the US dollar on official markets. This depreciation marks a significant decline, with the Egyptian pound’s value dropping by approximately 4.
3% in a single day, reaching its weakest official rate ever recorded.
The sudden depreciation comes amidst a surge of foreign investors exiting Egypt’s local bond markets, one of the most volatile periods regional economies have witnessed in recent years.
According to local reports, the latest depreciation of the Egyptian pound follows a week of heightened tensions in the region, particularly with the ongoing conflict between the United States, Israel, and Iran.
Bank screens in Cairo displayed the dollar buying at 52. 15 Egyptian pounds and selling at 52.
25, reflecting the sharp drop in the currency’s value.
This decline echoes the economic turmoil Egypt faced in early 2024 when the dollar traded at about 70 pounds on the black market, a reflection of the severe shortage of foreign currency that paralyzed the economy.
However, the official exchange rate at the time was fixed at 30 pounds to the dollar, under a state-imposed control.
The government unified the official and parallel rates under an International Monetary Fund (IMF) program later in 2024, stabilizing the official rate at around 50 pounds to the dollar.
While there has been no official confirmation of the exact scale of foreign capital outflows, substantial withdrawals have occurred since the conflict began, according to preliminary banking data and analysts quoted by The National. Estimates range from 2 to 5 billion US dollars, mostly drawn from Treasury bills and bonds that had attracted foreign investors seeking high real returns.
The situation remains fluid, with officials yet to provide detailed comments on the matter.
Further details are expected as the situation develops.
