4 reasons explain the decline of the Egyptian pound against the dollar despite the jump in remittances abroad
The Egyptian pound has steadily increased against the US dollar in recent days, reaching 47.95 Egyptian pounds on Tuesday, compared to 46.72 Egyptian pounds one week ago, representing an increase in the price of the dollar against the pound by about 123 piasters. This sudden decline comes despite data from the Central Bank of Egypt, which reported that remittances from Egyptians working abroad recorded their highest historical level during the year 2025, with an annual increase of 40.5% to reach about 41.5 billion dollars. The data showed that remittances continued their strong momentum during the first half of the 2025/2026 fiscal year, achieving an annual growth of 29.6% to reach about $22.1 billion, compared to $17.1 billion during the same period of the previous fiscal year.
4 reasons that explain the decline of the pound
This decline is attributed, according to several reports, to the withdrawal of foreign investors and funds from Emerging markets or what is known as hot money, as the total exit from the Egyptian market amounted to about 12 billion Egyptian pounds (250 million US dollars) during the past week, according to stock market data. Global markets have reacted in recent weeks to the United States’ deployment of military assets in the region, in light of its threat to launch a strike on Iran. While analysts point out that the pound is fluctuating in line with the decline in confidence in Global markets, because the government has stopped interfering in managing its value as it used to. The value of the pound had previously depreciated sharply over short periods due to the increased flexibility of its exchange rate. In April of last year, the dollar exchange rate exceeded 51 Egyptian pounds amid foreign cash outflows amounting to 2.25 billion pounds within one week. Since the outbreak of the Russian-Ukrainian war in January 2022, the Egyptian market has witnessed a new wave of foreign capital outflow, including the exit of about $20 billion from the market, as the Ministry of Finance announced at the time.
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