Egyptian pound and US dollar banknotes. AFP
The currency traded at EGP 52.44 for buying and EGP 52.57 for selling, down by EGP 0.63 or 1.18 percent from EGP 53.07 and EGP 53.2, respectively, on Thursday.
The continued strengthening of the Egyptian pound comes after weeks of volatility driven by the escalation of the US-Israeli war on Iran, which had unsettled investors, disrupted capital flows, and led to the exit of more than $10 billion in short-term foreign investments (hot money) from Egypt’s secondary market, while also increasing demand for foreign currency.
Since late February, the pound has lost about EGP 4.58, or 9.54 percent, from around EGP 47.9 before the war began.
Overall, the Egyptian pound has declined by about 13.5 percent against the US dollar since the start of the strikes. However, it gained 1.2 percent compared with last week’s COB rates.
The ceasefire announcement helped calm markets and ease pressure on emerging market currencies, although risks linked to regional developments and capital flows remain.
Despite these pressures, Egypt’s foreign reserves rose to $52.83 billion at the end of March, up from $52.47 billion in February, providing some support against external shocks.
Across banks, exchange rates continued to edge lower. The highest rates were recorded at EGP 52.47 for buying and EGP 52.57 for selling at the National Bank of Egypt (NBE) and Banque Misr, while the lowest rates were at EGP 52.45 for buying and EGP 52.55 for selling at CIB Bank.
Other currencies and gold
The euro fell to EGP 61.86 for buying and EGP 62.02 for selling, while sterling traded at EGP 71.10 and EGP 71.35.
Gulf currencies also continued to move lower. The Kuwaiti dinar traded at EGP 171.64 for selling, the Bahraini dinar at EGP 138.95, the Omani riyal at EGP 136.56, and the Jordanian dinar at EGP 74.25.
CBE data shows major currencies have gained between about EGP 1.21 and EGP 14.51 against the pound since the start of the conflict.
Gold prices rose in the local market. The gold sovereign (geneih dahab) climbed to EGP 57,200, up EGP 80 from Thursday’s EGP 57,120 and about EGP 1,440, or 2.58 percent, from pre-war levels, according to gold trading platform iSagha.
Meanwhile, 24-karat gold reached EGP 8,171 on Tuesday, up EGP 12 from Thursday’s EGP 8,159, and rising by EGP 206.5, or 2.59 percent, from EGP 7,965 before the start of the war.
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