The dollar exchange rate in Egypt today exceeds 47.70, and details of the IMF loan
In a new development in Egypt's foreign exchange market, the Egyptian pound has resumed its decline against the US dollar, breaking the relative stability it had enjoyed recently. Despite recording its longest winning streak lately, supply and demand forces pushed the greenback above 47.70 pounds, reflecting the flexible approach adopted by the Central Bank of Egypt in managing the exchange market.
Details of exchange rates at banks
Recent data compiled by Al Arabiya Business reveals slight variations in exchange rates among banks operating in the Egyptian banking sector. The National Bank of Kuwait topped the list of highest dollar rates, recording 47.73 Egyptian pounds for buying and 47.83 Egyptian pounds for selling. Conversely, the Egyptian Arab Land Bank offered the lowest rate for the US dollar at 47.48 Egyptian pounds for buying and 47.58 Egyptian pounds for selling.
At major banks, the dollar remained stable at 47.65 Egyptian pounds for buying and 47.75 Egyptian pounds for selling at the National Bank of Egypt, Banque Misr, United Bank, Bank of Alexandria, and HSBC. Meanwhile, the Central Bank of Egypt recorded an average exchange rate of 47.59 Egyptian pounds for buying and 47.73 Egyptian pounds for selling.
Context of the IMF program
These price movements coincide with economic circles awaiting the disbursement of the next tranches of the International Monetary Fund loan. In this context, Dr. Mohamed Maait, a member of the IMF's Executive Board, confirmed that Egypt's inclusion on the Executive Board's agenda will take place after the end of the year-end holidays in the United States, specifically after January 5th.
This measure is of paramount importance to the Egyptian economy, as the agreement reached at the staff level on the fifth and sixth reviews paved the way for access to approximately $2.7 billion in financing. These cash inflows are crucial for bolstering foreign currency reserves and supporting exchange market stability in the medium term, especially given Finance Minister Mohamed Maait's assurances that the program has achieved its primary objectives in restoring economic stability.
Monetary policy and interest rate cuts
On the other side of the economic landscape, the Central Bank of Egypt continues its monetary easing policy to support growth rates. At its final meeting of the year, the Monetary Policy Committee decided to cut interest rates by 100 basis points, bringing deposit and lending rates to 20% and 21%, respectively. This is the fifth rate cut since the beginning of 2025, bringing the total reduction to 625 basis points over the year.
Analysts indicate that this shift towards lower interest rates reflects the central bank's success in curbing inflation, which had reached historic highs in previous years, with the focus now shifting to stimulating investment and economic growth. These steps are consistent with the central bank's projections of a slowdown in economic growth to 5% in the last quarter of 2025, necessitating intervention to reduce the cost of financing for businesses and individuals to boost production.
