Egyptian Pound Strengthens Amid Improved Dollar Liquidity and Progress on State Asset Sales
The Egyptian pound continued to strengthen against the U.S. dollar at the start of this week’s trading, supported by an improved supply of foreign currency and a notable easing of geopolitical tensions in the region. This positive momentum has reinforced stability in Egypt’s foreign exchange market and boosted investor confidence.
After reaching a peak of over EGP 51 per dollar in mid-June, the greenback began a downward trend, trading on Sunday morning at EGP 49.36 for buying and EGP 49.49 for selling, according to the Central Bank of Egypt. Among banks, Abu Dhabi Islamic Bank offered the highest buying rate at EGP 49.40, while Crédit Agricole Egypt posted the lowest at EGP 49.27. Major state-owned banks — including the National Bank of Egypt, Banque Misr, Banque du Caire, Al Baraka Bank, and Suez Canal Bank — quoted the dollar at EGP 49.32 for buying and EGP 49.42 for selling.
This relative exchange rate stability comes amid positive developments in Egypt’s loan program with the International Monetary Fund (IMF). Deputy Finance Minister Ahmed Kouchouk indicated during a recent visit to London that the fifth and sixth reviews of the IMF-supported program are expected to conclude by September or October, paving the way for the disbursement of a $2.5 billion tranche.
Kouchouk emphasized that both parties are working to meet the necessary benchmarks, particularly those related to reducing the state’s footprint in the economy and accelerating the privatization agenda. The government is targeting three to four strategic asset sales during the current fiscal year, spanning sectors such as telecommunications, airport management, and financial services.
Earlier this month, the IMF announced it would merge the fifth and sixth reviews of the program, citing the need for additional time to make progress on key reform goals, especially those linked to boosting private sector participation and advancing broader structural reforms.
According to the IMF’s latest report, Egypt expects to generate $3 billion in proceeds from state asset sales during this fiscal year — up from just $600 million last year — and aims for an additional $2.1 billion in the following fiscal year. The government has shared a medium-term strategy with the IMF and other international partners, including a clear and visible timeline to meet reform targets.
