Egyptian pound hits historic low against US dollar
The Egyptian pound reached a historic low against the US dollar on Monday, October 26, 2026, as the greenback crossed the 56-egp threshold across multiple domestic lenders. The Central Bank of Egypt fixed the dollar at 56.21 pounds for purchase and 56.35 pounds for sale during Monday trading sessions.
Diverging Rates Across Commercial Lenders
Commercial banks showed minor variations in their pricing structures at the start of the week. Alarabiya Business noted that the highest selling prices touched 56.35 pounds with purchase rates at 56.25 pounds at Abu Dhabi Islamic Bank, Suez Canal Bank, HSBC, and saib. Meanwhile, Crédit Agricole recorded the lowest purchase price across the market at 56.19 pounds and a selling price of 56.29 pounds.
State-owned institutions such as the National Bank of Egypt and Banque Misr, alongside the Commercial International Bank, quoted the dollar at 56.22 pounds for purchase and 56.32 pounds for sale. Anadolu Ajansı observed that the currency movement reflects underlying supply and demand dynamics in a flexible exchange rate regime.
Foreign Reserves Hit Record as Debt Outflows Occur
Secondary market transactions in Egyptian government debt saw net foreign outflows totaling 2.1 billion dollars during the preceding week, alongside net Arab purchases, according to data from the Egyptian Exchange cited by Alarabiya Business. This movement followed two weeks of net inflows into the secondary debt market.
Despite debt portfolio shifts, Egypt’s international reserves expanded. The Central Bank of Egypt reported that foreign exchange reserves climbed to a record 57.35 billion dollars at the end of September, up by 134 million dollars from August. Remittances from Egyptian workers abroad rose 27.2 percent during the first eight months of 2026 to reach 33.9 billion dollars.
Equity Markets Drop as Central Bank Prioritizes Flexible Rate
Equity markets experienced turbulence alongside the currency adjustment. The EGX30 benchmark index dropped two percent in early trading on Monday following a thirty-minute suspension of the Egyptian Exchange on Sunday after the EGX100 equal-weighted index fell ten percent.
Central Bank Governor Hassan Abdallah stated during a Cairo forum that a flexible exchange rate serves as a primary defense line against external shocks, emphasizing that policymakers prioritize unifying the exchange rate over maintaining a fixed nominal target.