14 Hrs
Source:
الاقتصادية
Egyptian pound and hot money dynamics
The article discusses the impact of hot money leaving the Egyptian debt instrument market on the exchange rate of the Egyptian pound, noting that the exchange rate reached 51.42 pounds per dollar in some banks as the currency's value continued to decline due to reduced foreign inflows. Over the past week, approximately $1.46 billion exited the market, and the net outflow for March was around $6.4 billion, despite Egypt receiving $11.8 billion in hot money during the second quarter of 2026. Experts indicate that every billion dollars withdrawn leads to a devaluation of the pound by about 50 piastres, and that a return of funds does not fully restore the currency’s value, with only about 20 piastres recovered. It is anticipated that short-term currency trends will be influenced by geopolitical factors, monetary policy, and reserve levels, amid investor expectations for regional tensions to ease.
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