Egyptian pound strengthens against USD during weekend

Cairo – May 18, 2025: Last week, the LE strengthened significantly against the USD, supported by a wave of foreign currency inflows. The U.S. dollar's recent global decline—triggered by new economic data—has coincided with a notable rebound in the Egyptian pound.

These gains have been fueled by increased remittances from Egyptians working abroad, a strong uptick in tourism revenue, and a renewed interest from investors in Egypt's local debt instruments.

On Saturday, the exchange rate for the USD fell to approximately LE 50.08 for buying, with selling prices ranging between LE 50.18 and LE 50.22 across most local banks.

Confidence in Egypt’s financial outlook was further reinforced by a strong return of foreign investments into domestic debt markets.

Over the past week, local debt instruments attracted approximately USD 1.1 billion in inflows, largely from Arab investors. In a recent auction by the Ministry of Finance valued at LE 80 billion, foreign institutions submitted bids totaling LE 204 billion. The ministry accepted LE 111.5 billion, reflecting robust demand and growing investor confidence in Egypt’s macroeconomic stability.

The upward movement of the LE was amplified by recent global pressure on the USD.

On Thursday, the greenback retreated after U.S. economic data signaled a cooling in consumer activity. Retail spending in April slowed amid growing uncertainty about the U.S. economic outlook, raising concerns about the strength of domestic demand.

In a separate report, the U.S. Labor Department announced that the Producer Price Index (PPI) for final demand fell by 0.5 percent in April, following an upwardly revised flat reading in March. The decline was largely attributed to weakened demand for air travel and hotel accommodations.

Analysts have linked the drop in tourism to former President Donald Trump’s polarizing policy agenda, which included trade protectionism, a crackdown on immigration, controversial remarks likening Canada to a "51st state," and an expressed interest in acquiring Greenland—all of which have dampened international tourism to the U.S.

Earlier in the week, the USD had surged more than 1 percent following a temporary trade truce between the U.S. and China, which involved a 90-day pause on most tariffs. However, the boost proved temporary as softer economic data and geopolitical unease weighed on the currency.