File Photo: Egyptian pound, British pound sterling, and US dollar banknotes. AFP
The US dollar traded at EGP 52.62 for buying and EGP 52.76 for selling, up about EGP 0.33, or 0.6 percent, from last week’s close of EGP 52.29 and EGP 52.42, respectively, when the currency had held broadly steady.
The latest move leaves the pound weaker than levels seen before the outbreak of the US-Israeli war on Iran on 28 February and subsequent regional escalation. The currency has depreciated by about EGP 4.76, or nearly 10 percent, from around EGP 47.9 at the end of February.
Recent volatility has been driven in part by capital outflows, with roughly $1 billion exiting Egyptian treasury bills as investors reacted to rising geopolitical risk. The pound briefly weakened to nearly EGP 53 before recovering some ground.
Analysts say continued pressure on capital flows could push the currency lower if the conflict persists, with some warning the dollar could approach EGP 58 and drive inflation higher to 28–30 percent due to rising global energy, transport, and shipping costs.
Across the banking system, exchange rates showed some variation. HSBC quoted among the highest levels on Tuesday, at about EGP 52.85 for buying and EGP 52.75 for selling, up from last week’s peak of around EGP 52.32–52.42.
Other lenders, including Commercial International Bank (CIB), Suez Canal Bank, and Al Ahli Bank of Kuwait, quoted rates in the EGP 52.65–52.75 range, while Banque Misr, QNB Alahli, and National Bank of Egypt (NBE) reported slightly lower levels around EGP 52.63–52.73.
The weaker currency has begun to feed through into domestic prices. In the automotive market, vehicle prices have risen by between EGP30,000 and EGP200,000, reflecting the sector’s heavy reliance on imported components and foreign currency.
Other currencies
The euro strengthened to EGP 60.99 for buying and EGP 61.17 for selling on Tuesday, up EGP 0.65 from pre-holiday levels and about EGP 4.5 higher than before the conflict.
Sterling traded at EGP 70.53 for buying and EGP 70.71 for selling, rising by EGP 0.66 week on week and by roughly EGP 5.7 compared with pre-conflict levels.
Gulf currencies were broadly stable on the day but remained elevated against the pound. The Saudi riyal traded at EGP 14.01–14.05, while the UAE dirham stood at EGP 14.32–14.36 and the Qatari riyal at around EGP 14.37–14.47.
The Kuwaiti dinar rose to EGP 171.6–172.1, up about EGP 1.1 from last week, while the Bahraini dinar reached EGP 139.29–139.85. The Omani riyal climbed to EGP 136.67–137.07, and the Jordanian dinar to EGP 74.12–74.52.
CBE data showed these currencies have risen by roughly EGP 1.2 to EGP 14.9 against the pound since the start of the conflict.
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