Egyptian Pound Jumps Against Dollar as Foreign Currency Inflows Pour In

Egypt’s currency saw one of its strongest weekends in months. Backed by a flood of foreign capital and a cooler U.S. dollar, the pound is punching back—hard.

It’s not just about numbers on a screen. This rebound is stirring cautious optimism in a country that’s been under financial stress for far too long.

A Rare Weekend Win for the Pound

The Egyptian pound firmed up notably against the U.S. dollar last week, settling at around LE 50.08 for buying on Saturday. Selling prices hovered between LE 50.18 and LE 50.22 at most major banks.

It was a sharp pivot from earlier months where the dollar seemed to be running the show.

This time, though, Egypt had some unexpected help: the greenback itself took a step back globally. New economic data out of the U.S. hinted at a possible policy shift from the Federal Reserve. That sent the dollar tumbling—and opened the door for other currencies, like Egypt’s, to rise.

Remittances, Tourism, and Debt: The Triple Boost

It wasn’t just macro winds from the West. Egypt’s economy is finally seeing some meaningful momentum on its own turf.

Three factors have kicked the pound up:

• Higher remittances from Egyptians working abroad

• A solid comeback in tourism revenues

• Strong foreign appetite for local government debt

Remittance inflows have jumped—though exact figures for May haven’t been released yet, early bank estimates point to a month-on-month increase of nearly 9%. That’s critical for a country where remittances are one of the largest sources of foreign currency.

Tourism has also delivered. Thanks to a calmer security landscape and more international flight routes, hotel occupancy rates in hotspots like Cairo, Luxor, and Sharm El-Sheikh have climbed. Early Q2 projections show tourism earnings could top $14 billion by year-end, if the pace holds.

Big Money Bets on Local Debt

One of the strongest signals of renewed investor faith came from a recent Ministry of Finance auction. It was… big.

In an LE 80 billion auction, foreign institutions threw in bids worth a whopping LE 204 billion. Eventually, the ministry accepted LE 111.5 billion.

That’s not small potatoes.

Roughly $1.1 billion in foreign currency flowed into domestic debt markets in just the past week. And according to sources in the Central Bank, most of that came from Arab institutional investors looking for stable yields.

It’s a sharp reversal from earlier this year, when foreign capital all but dried up amid fears of devaluation and inflation spirals.

The Dollar’s Stumble Helped—A Lot

The dollar didn’t fall off a cliff, but the slip was enough to let emerging market currencies breathe.

New inflation data from the U.S. last week showed cooler-than-expected price growth. That led many analysts to speculate that the Fed might hold back on further rate hikes—or even begin cutting rates by Q4.

That speculation has sent the dollar down across the board.

For Egypt, the timing couldn’t have been better. The pound, long under pressure, caught a break and used it well.

In fact, it wasn’t just Egypt. Other currencies in emerging markets like South Africa and Brazil also saw some light tailwinds. But Egypt’s case stood out because of how severe its past troubles were.

Where Does This Leave the Pound?

Things are looking better. But no one’s throwing a party just yet.

Inflation is still high. Imports are still expensive. And any slip in foreign inflows could quickly reverse this trend. Some analysts warn that the recent surge in pound value may be temporary—driven more by sentiment and speculative flows than deep structural change.

Here’s a quick snapshot of recent key figures:

The real test will come in the weeks ahead.

If the inflows keep coming—and the Fed does start easing—then the pound might have more room to breathe. But for now, Egypt’s central bank will likely play it safe, watching both capital movements and political sentiment closely.