Fresh Dollar Volatility in Egypt… Hot Money Outflows Weigh on the Egyptian Pound
The U.S. dollar continued to show mixed movements in Egypt at the start of the trading week, as the American currency rose in several banks while declining in others. In most banking institutions, however, it continued trading above the EGP 51 level, amid the continued impact of hot money outflows from government debt instruments for the second consecutive week.
According to a survey conducted by Al Arabiya Business, the highest exchange rate for the U.S. dollar was recorded at Abu Dhabi Islamic Bank, Suez Canal Bank, and Next Bank, where it reached EGP 51.38 for buying and EGP 51.48 for selling. The lowest rate was recorded at Emirates NBD Egypt, at EGP 50.40 for buying and EGP 50.50 for selling.
The dollar also traded at EGP 51.30 for buying and EGP 51.40 for selling at the Commercial International Bank (CIB), Crédit Agricole Egypt, Egyptian Gulf Bank, Housing and Development Bank, United Bank, and the Arab African International Bank. Meanwhile, at the National Bank of Egypt, Banque Misr, and the Arab Bank, the dollar stood at EGP 51.29 for buying and EGP 51.39 for selling. At the Central Bank of Egypt, the exchange rate remained stable at EGP 51.28 for buying and EGP 51.42 for selling.
Despite the current fluctuations, the Egyptian pound ended 2025 with strong performance, gaining 6.7% against the U.S. dollar since the beginning of the year, supported by rising remittances from Egyptians working abroad and improved liquidity levels within the banking sector.
Hot Money Outflows Pressure the Foreign Exchange Market
The latest movements in the dollar exchange rate coincided with the continued wave of hot money outflows from the Egyptian market. Data from the Egyptian Exchange showed that Arab and foreign investors recorded net sales of $459.2 million in the secondary government debt market by the end of last week’s trading.
Foreign investment flows fluctuated noticeably throughout the week. They began with net purchases of $6.85 million on Sunday, before shifting to net sales of $37.1 million on Monday. Outflows then accelerated to $442.4 million on Tuesday, while positive inflows returned on Wednesday with net purchases totaling $13.5 million.
During the previous week, Egypt recorded net hot money outflows of $1.46 billion, coinciding with renewed tensions in the Middle East, which affected short-term foreign investments in government debt instruments.
Despite these pressures, data indicate that foreign investment flows remained positive over earlier periods. The secondary government debt market recorded net purchases of $8.76 billion in June, while hot money inflows during the second quarter of 2026 reached approximately $11.66 billion, reflecting continued investor interest in the Egyptian market despite temporary withdrawal waves.
Record Foreign Reserves and Remittances Support the Economy
Meanwhile, Egypt’s foreign exchange reserves continued to reach record levels after the Central Bank of Egypt announced that net international reserves had risen to $55.07 billion at the end of June, compared with $53.134 billion in May, representing an increase of approximately $1.93 billion.
This marks the highest level of foreign exchange reserves in Egypt’s history, driven by improved foreign currency inflows, particularly higher exports, increased tourism revenues, and the continued growth in remittances from Egyptians working abroad.
Data from the Central Bank of Egypt showed that remittances from Egyptians abroad increased by 33.2% during the first ten months of the current fiscal year (July 2025–April 2026), reaching approximately $39.2 billion, compared with $29.4 billion during the same period of the previous fiscal year.
On a monthly basis, remittances in April 2026 grew by 44%, reaching approximately $4.3 billion, compared with $3 billion in April 2025.
Remittances also continued to reach historic levels throughout 2025, recording their highest value ever after increasing by 40.5% to approximately $41.5 billion, compared with around $29.6 billion in 2024. This strengthens Egypt’s sources of foreign currency and supports the economy’s ability to withstand fluctuations in financial markets and short-term capital movements.
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Author: Counselor Faisal Al-Mutairi.
Publication Date: July 26, 2026.
Last Updated: July 2026.
