The Egyptian pound has slumped to a historic low, breaching the EGP 55-per-dollar threshold, as the Central Bank of Egypt (CBE) urges the public not to panic amid mounting external pressures.
The pound closed at EGP 55.35 per dollar in commercial bank trading on Thursday, surpassing the previous record of EGP 54.75 set in April following US-Iranian military escalation. By Sunday, October 25, the dollar had climbed further, reaching EGP 55.89 for selling at the CBE and surpassing EGP 55.5 at major local banks.
CBE Governor Hassan Abdalla defended the country’s flexible exchange-rate policy, stating that currency movements are “a natural response to changing economic conditions” and that a fixed rate despite shifting circumstances would be more concerning. “We are committed to a flexible exchange rate, and we hope society understands that these movements are normal,” Abdalla said at the Egypt 2026 Forum, urging the public not to give in to “unwarranted anxieties”.
Egyptian media analysis attributes the renewed pressure to regional geopolitical tensions, rising energy import costs, and foreign debt repayment obligations. Foreign investors have withdrawn roughly $2 billion** from Egypt’s bond secondary market in recent days, while higher global energy prices have increased demand for dollars. Egypt’s external debt stood at **$164.8 billion at the end of June 2026, with $28.3 billion in external debt service paid during the first nine months of FY2025/26.
Maintaining exchange-rate flexibility is a key commitment under Egypt’s $8 billion IMF Extended Fund Facility, scheduled to conclude in mid-December.
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