File Photo: Egyptian pound, British pound sterling, and US dollar banknotes. AFP
The currency traded at EGP 49.46 for buying and EGP 49.60 for selling, strengthening by EGP 0.09, or 0.17 percent, from Wednesday's rates of EGP 49.55 and EGP 49.69, respectively.
Compared with Sunday’s closing rates of EGP 49.80 for buying and EGP 49.94 for selling, the pound gained EGP 0.34, or nearly 0.7 percent, during the week.
The latest gains follow the settlement of Egypt's outstanding dues to foreign energy partners, improving external financial conditions and high interest rates. They also bring the currency closer to Standard Chartered's forecast of EGP 49 per US dollar by the end of 2026.
The rebound also coincides with signs of improving macroeconomic stability, one of Egypt's key commitments under its International Monetary Fund (IMF) programme. The seventh review of the Extended Fund Facility (EFF), along with the second review under the Resilience and Sustainability Facility (RSF), is progressing positively.
Meanwhile, state-owned lenders, including Banque Misr and the National Bank of Egypt, raised returns on certificates of deposit and introduced new savings products during the week.
Markets are now awaiting the Central Bank's Monetary Policy Committee meeting on 9 July for further signals on the outlook for interest rates.
Despite the recent recovery, the pound remains around EGP 1.6, or 3.3 percent, weaker than its pre-conflict rate of EGP 47.99 against the US dollar. However, this marks an improvement from the 3.9 percent decline recorded at the start of the week.
Across local banks, the highest exchange rates on Thursday ranged between EGP 49.47 and EGP 49.59 for buying and between EGP 49.57 and EGP 49.69 for selling at seven banks, including HSBC, QNB, and the Egyptian Arab Land Bank.
Meanwhile, the lowest rates ranged between EGP 49.37 and EGP 49.45 for buying and between EGP 49.47 and EGP 49.55 for selling at the National Bank of Kuwait, Crédit Agricole Egypt, and Al Baraka Bank Egypt.
Euro returns to pre-conflict levels
The euro weakened against the Egyptian pound, trading at EGP 56.11 for buying and EGP 56.28 for selling on Thursday, down slightly from EGP 56.18 and EGP 56.34 on Wednesday and matching Sunday's closing rates.
The European currency is now trading EGP 0.35, or 0.63 percent, below its pre-conflict closing rate of EGP 56.63 recorded on 26 February, before the outbreak of the US-Israeli war on Iran two days later.
The British pound traded at EGP 65.12 for buying and EGP 65.32 for selling, down marginally from Wednesday's rates and below Sunday's EGP 65.90 and EGP 66.10. It nevertheless remains around EGP 0.34 above its pre-conflict level.
Gulf currencies also continued to weaken against the Egyptian pound. The Kuwaiti dinar traded at EGP 161.12 on Thursday, down from EGP 162.41 on Sunday, while the Bahraini dinar fell to EGP 131.58 from EGP 132.48.
The Omani riyal traded at EGP 128.85, down from EGP 130.06 on Sunday, while the Jordanian dinar fell to EGP 70.06 from EGP 70.54.
According to CBE data, Gulf currencies have depreciated against the Egyptian pound by between EGP 0.41 and EGP 4.27 since the outbreak of the US-Israeli war on Iran.
Gold prices extend losses
Gold prices continued to decline.
The gold sovereign (geneih dahab) traded at EGP 45,680 on Thursday, down EGP 40 from Wednesday and EGP 2,400 from Sunday's level of EGP 48,080, according to gold trading platform iSagha.
Meanwhile, 24-karat gold traded at EGP 6,525.75, down EGP 5.75 from Wednesday and EGP 343 from Sunday's level of EGP 6,868.5.
Short link: