Euro Surges Against Egyptian Pound to Over 30-Piaster Jump
Taarek Refaat
The euro witnessed a notable surge against the Egyptian pound on Sunday, marking a significant start to the banking first day of the week in Egypt.
The exchange rate climbed by more than 30 piasters compared to Saturday's rates, reflecting growing foreign exchange pressures amid ongoing economic reforms and global uncertainty.
According to official data from Egyptian banks, the euro traded at EGP 58.09 for purchase and EGP 58.21 for sale at the Central Bank of Egypt (CBE). At Egypt's two largest state-owned banks—National Bank of Egypt and Banque Misr—the euro climbed even higher, recording EGP 58.33 to buy and EGP 58.71 to sell.
Sunday's rate spike marks one of the strongest weekly openings for the euro in Egypt this year, following a series of steady gains throughout June. Compared to early June—when the euro hovered around EGP 56.4–56.6—the current exchange rate reflects a total increase of nearly 2 Egyptian pounds in just over two weeks.
'The sharp appreciation of the euro against the pound highlights renewed pressure on Egypt's foreign exchange market,' said a senior currency trader at a private Cairo bank, speaking on condition of anonymity. 'It may be due to a mix of reduced hard currency inflows, seasonal demand, and adjustments linked to the government's ongoing economic reform agenda.'
Egypt continues to navigate a complex economic landscape as it implements IMF-backed reforms. These include a more flexible exchange rate regime, subsidy cuts, and efforts to attract foreign direct investment. While these policies are aimed at stabilizing long-term economic fundamentals, they have also resulted in short-term volatility in the local currency.
The euro's strength may also be tied to regional and global factors. Analysts point to tighter European Central Bank policy, geopolitical tensions, and shifting investor sentiment in emerging markets as contributing forces behind capital outflows from Egypt and similar economies.
For Egyptian households and businesses, the rise in euro prices adds further pressure to an economy already grappling with inflation and rising import costs. Imported goods priced in euros—ranging from pharmaceuticals to industrial equipment—are likely to become more expensive if the trend continues.
Tourists traveling to Europe this summer will also feel the pinch, as the cost of exchanging pounds for euros rises sharply. Meanwhile, Egyptian exporters and those receiving remittances in euros may find some relief in the stronger European currency.
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