After hitting its lowest rate since last year’s devaluation yesterday, with the EGP reaching 51.4 against the US dollar, the currency slipped further to a record low of EGP 51.53
The Egyptian pound (EGP) and the Egyptian Exchange (EGX) experienced a modest recovery by the end of Tuesday’s trading session, after a series of recent declines.
After hitting its lowest rate since last year’s devaluation yesterday, with the EGP reaching 51.4 against the US dollar, the currency slipped further to a record low of EGP 51.53, before rallying back to EGP 51.27 by 3 PM Cairo time, signaling some stabilization.
The stock market also showed signs of recovery after a sharp drop on Sunday, followed by a slight rally on Monday.
By the close of Tuesday’s session, all EGX indices had turned green, marking a much-needed rebound. The benchmark index EGX 30 rose by 0.64%, driven by Egyptian and Arab purchasing.
The economic volatility continues to be influenced by US trade policies, particularly the tariff hikes under the Trump administration. These tariffs have had a ripple effect on global markets, indirectly impacting Egypt’s trade environment.
The potential for another tariff increase by the US government tomorrow has further heightened uncertainty.
Despite the challenges, Egypt managed to receive the lowest possible trade levy of 10% from the US, unlike some of its regional counterparts.
Egypt’s trade with the US has evolved over the past year. According to data from theObservatory of Economic Complexity (OEC), in January 2025, the United States exported $776 million to Egypt and imported $207 million from the country, resulting in a positive trade balance of $570 million.
According to the Central Agency for Public Mobilization and Statistics (CAPMAS), from January to November 2024, Egypt’s imports from the US reached $6.75 billion, a 39.6% increase from $4.8 billion in the same period of 2023.
Key imports included mineral oils, fuels, machinery, and vehicles. In parallel, Egypt’s exports to the US grew by 13.9% year-on-year, totaling $2 billion in 2024 compared to $1.8 billion in 2023.
In February, US President Donald Trump warned that BRICS economic bloc—including Egypt—could face tariffs as high as 100% if they challenged the dominance of the US dollar.
These remarks came amid discussions among BRICS countries about the potential establishment of their own currency, which could further destabilize the global financial system.
Although Egypt was spared the harsher tariffs faced by other Middle Eastern countries, such as Israel and Iraq, it is not immune to the broader economic fallout.
A recent Bloomberg report highlighted the vulnerability of emerging markets like Egypt, with foreign portfolio investors pulling back amid global uncertainty.
Goldman Sachs and EFG Hermes, both major investment firms, reported to the news site that foreign investors have pulled more than $1 billion from Egypt’s markets, largely due to the risk-off sentiment triggered by global trade tensions.
Farouk Soussa, Goldman Sachs’ economist for the Middle East and North Africa, noted that Egypt’s relatively weak credit rating and significant external-financing needs have made it more susceptible to market selloffs.
