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Home Sector Markets Egyptian pound plummets to record low as dollar jumps 2 percent following Trump tariffs

Egyptian pound plummets to record low as dollar jumps 2 percent following Trump tariffs

The exchange rate closed at EGP51.19 to $1, up from EGP50.66
Egyptian pound plummets to record low as dollar jumps 2 percent following Trump tariffs
The U.S. dollar was quoted at EGP51.07 for buying and EGP51.17 for selling at major banks, including the National Bank of Egypt, Banque Misr, and Banque du Caire.

The U.S. dollar exchange rate against the Egyptian pound soared to an unprecedented level following the implementation of new tariffs by President Donald Trump on 5 April, marking the weakest performance for the pound since December 2024.

At the Central Bank of Egypt (CBE), the exchange rate closed at EGP51.19 to $1, up from EGP50.66 on Thursday. The U.S. dollar was similarly quoted at EGP51.07 for buying and EGP51.17 for selling at major banks, including the National Bank of Egypt, Banque Misr, and Banque du Caire. The Commercial International Bank (CIB) maintained consistent rates, with the dollar priced at EGP51.07 for buying and EGP51.17 for selling.

Tariff impact on currency fluctuation

The tariff increase imposes a 10 percent levy on imports from 180 countries, including Egypt, and is a key factor influencing the fluctuation in Egypt’s currency. Last week, U.S. President Donald Trump announced a 10 percent baseline tax on imports from all countries and higher tariff rates on several other nations that run trade surpluses with the United States. Trump’s extensive tariffs took effect on April 5, and his reciprocal tariffs will impact new imports of foreign-made goods starting April 9.

The president emphasized that these tariffs would compel other countries to reduce their own rates on U.S. goods and services, fostering a more balanced economic environment for U.S. exports and providing a strong incentive for companies to manufacture goods, such as cars, within the U.S. to avoid the tax.

Read more: Egyptian banks report record profits of $10.6 billion in 2024

Economic contraction in non-oil private sector

Egypt’s non-oil private sector experienced a contraction in March, marking the first downturn of 2025 due to weakened demand, as reported by S&P Global on Thursday. The Purchasing Managers’ Index (PMI) fell to 49.2 from 50.1 in February, dipping below the 50.0 threshold that distinguishes growth from contraction. This decline in the PMI was primarily driven by a reduction in new orders, both domestically and internationally, leading firms to scale back on output, purchases, and staffing levels.

European Parliament approves loans for Egypt

Members of the European Parliament approved a proposal last week to provide Egypt with loans worth EUR4 billion ($4.3 billion). The EU Parliament adopted the macro-financial assistance to Egypt with 452 votes in favor, 182 against, and 40 abstentions. Additionally, the European Commission proposed support for Egypt on March 15, 2024, in the form of macro-financial assistance through loans amounting to up to EUR5 billion.

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