The US dollar exchange rate remained remarkably stable against the Egyptian pound at the start of trading on Tuesday, January 20, 2026, across various Egyptian public and private banks. This stability is a testament to the success of the monetary policies implemented by the Central Bank of Egypt in recent months, which aimed to achieve balance in the foreign exchange market and eliminate the parallel market.
Historical background and context of current stability
This stability was not a coincidence, but rather the result of a series of decisive economic measures that began in the first quarter of 2024. On March 6, 2024, the Central Bank of Egypt made a historic decision to fully liberalize the exchange rate of the Egyptian pound, allowing it to fluctuate according to supply and demand. This decision was a necessary step to address the distortions that had plagued the Egyptian economy for years, namely the existence of two exchange rates—one official and the other in the parallel market—which had led to a severe shortage of foreign currency and negatively impacted investment and economic activity.
The decision to float the exchange rate coincided with a massive international and regional support package, most notably the major investment deal in the Ras al-Hikma project with the United Arab Emirates, which injected significant dollar liquidity into the economy, in addition to an increase in the value of the International Monetary Fund loan. These cash inflows contributed to strengthening foreign currency reserves and enabled the central bank to meet the demand for dollars in the local market, leading to a convergence between the official and parallel market rates until the latter disappeared entirely.
The importance of exchange rate stability and its expected impact
Exchange rate stability is of paramount importance to the Egyptian economy at all levels. Domestically, this stability helps curb inflation, given that a large portion of essential goods and raw materials are imported. It also provides a more predictable business environment for importers and exporters, enabling them to develop accurate future plans for their operations. For the average citizen, this stability translates into relatively stable prices for goods and services, thus preserving their purchasing power.
At the regional and international levels, the stability of the Egyptian pound strengthens foreign investor confidence in the Egyptian economy and encourages further direct and indirect investments. It also projects a positive image to international financial institutions regarding Egypt's commitment to implementing its economic reform program, thus facilitating access to future financing on more favorable terms.
Dollar exchange rates in major Egyptian banks today
The following are the details of the dollar exchange rate against the pound at the start of trading today:
- Central Bank of Egypt: 47.35 Egyptian pounds for buying, and 47.49 Egyptian pounds for selling.
- National Bank of Egypt: 47.36 Egyptian pounds for buying, and 47.46 Egyptian pounds for selling.
- Bank of Egypt: 47.36 EGP for buying, and 47.46 EGP for selling.
- Commercial International Bank (CIB): 47.36 EGP for buying, and 47.46 EGP for selling.
- Bank of Alexandria: 47.37 EGP for buying, and 47.47 EGP for selling.
- Cairo Bank: 47.10 EGP for buying, and 47.20 EGP for selling.
- Abu Dhabi Islamic Bank: 47.40 EGP for buying, and 47.50 EGP for selling.
- Faisal Islamic Bank: 47.36 EGP for buying, and 47.46 EGP for selling.
- Suez Canal Bank: 47.36 Egyptian pounds for buying, and 47.46 Egyptian pounds for selling.
- National Bank of Kuwait: 47.34 Egyptian pounds for buying, and 47.44 Egyptian pounds for selling.
