Egyptian Pound slips into LE 49 against USD as IMF-Egypt review starts on Tuesday

Cairo – November 5, 2024: The Egyptian pound (LE) has fallen to over LE 49 against the US dollar, marking the second time that the currency has dropped to such a low level during 2024.

The LE is currently trading at approximately LE 49.14 to the dollar locally, deepening the losses from October and reflecting broader economic challenges.

Official rates given by the Central Bank of Egypt (as of 3 PM – Cairo time) were LE 49.09 for buying against the USD and LE 49.19 for selling.

This latest drop follows a steady weakening trend for the currency, which hit its lowest point since mid-August last week.

Following a surge in demand for USD, local banks have reported an increased number of requests for FX, according to unnamed sources speaking to Ashraq business.

In the past two years, the Egyptian pound has lost around 40-50 percent of its value against the USD after the government implemented a free float as part of broader efforts to stabilize the economy by allowing market forces to drive the currency’s value.

This drop comes as Egypt and the International Monetary Fund (IMF) meet to review the country’s IMF-backed reform program, with IMF Managing Director Kristalina Georgieva hinting yesterday that parts of the economic program might be subject to review.

A key topic in the upcoming talks between IMF officials and Egyptian government representatives will likely be the flexible exchange rate policy, which remains a central pillar of the IMF agreement.