Egyptian Pound Slumps Against Dollar and Euro Amid Regional Tensions

The Egyptian pound faced renewed pressure against the US dollar and euro at the end of this week's trading. The dollar closed at EGP 50.83 for buying and EGP 50.93 for selling at National Bank of Egypt, while the euro moved higher to EGP 59.32 for buying and EGP 59.64 for selling.

Investors are closely monitoring Egypt's external position as they assess the impact of regional tensions, energy prices, and external financing conditions. Morgan Stanley has described Egypt's external position over the past five months as more resilient than previously expected, outlining three potential economic scenarios linked to developments in oil prices and shipping through the Strait of Hormuz.

The most favorable scenario assumes the strait reopens and Brent crude falls to around $65 a barrel in the second half of 2026. This would reduce Egypt's energy import bill and help narrow its current-account deficit to approximately $13 billion, assuming stable remittance inflows.