Despite the weakening of the Egyptian pound’s exchange rate by around 10 percent against the US dollar since late February, the report said, the Central Bank of Egypt (CBE) has not intervened to back the currency, helping maintain wider stability in domestic dollarization.
Fitch said Egypt’s policy credibility has been supported by a sustained tight monetary stance, reflected in real policy interest rates of 4 percent in April and an average of 8 percent over the past year, as well as recent increases in administered fuel prices.
According to the report, Egypt’s net international reserves remained stable at $53 billion by the end of April 2026, while foreign-currency liquidity in the domestic market remained strong, with no significant gap between official and parallel exchange rates.
Remittances have also shown resilience, remaining stable since the start of the US-Israeli war on Iran and rising by 30 percent year-on-year in the first half of fiscal year 2026 to $22 billion, Fitch said, expecting that Egypt’s general debt will decline to 77 percent of Gross Domestic Product (GDP) by 2027, down from 81 percent in 2025.
The report follows a similar positive assessment by Fitch released in March, which affirmed that Egyptian banks are well-positioned to withstand the economic fallout from the ongoing Middle East war, supported by strong profitability, solid capital buffers, and improved foreign-currency liquidity.
In October 2025, Fitch affirmed Egypt’s long-term foreign-currency Issuer Default Rating (IDR) at B with a stable outlook, citing robust foreign reserves, a narrowing current account deficit, and sustained support from the Gulf Cooperation Council (GCC) and multilateral partners.
In the same month, global credit rating agency S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating to B from B- for the first time in seven years, citing ongoing economic reforms, improving growth prospects, and stronger external accounts.
Short link: