Egyptian Pound Weakened Against Major Currencies Amid Regional Tensions

The Egyptian pound weakened against major currencies in trading on Wednesday, August 19. The US dollar and euro both rose against the pound at the National Bank of Egypt and Banque Misr, with the dollar quoted at EGP 50.65 for buying and EGP 50.75 for selling at both banks.

At the close of trading, the euro was also up against the pound, with prices at EGP 58.61 for buying and EGP 59.09 for selling at National Bank of Egypt and EGP 58.61 for buying and EGP 58.93 for selling at Banque Misr.

The movement in exchange rates comes as international institutions continue to assess Egypt's external position amid regional tensions and uncertainty surrounding energy prices and capital flows. Morgan Stanley noted that Egypt's external position has proven more resilient than expected over the past five months.

However, the bank also outlined three potential scenarios for the Egyptian economy, with oil prices playing a key role in determining the country's outlook. Under its first scenario, Brent crude would fall to around $65 a barrel by 2026 and $60 in 2027, reducing Egypt's energy-import bill and narrowing the current-account deficit.