Egyptian Pound Jumps 7% Since May, Leading Global Currencies as Oil Prices Drop
Updated
Updated · Business Insider Africa · Jun 18
Egyptian Pound Jumps 7% Since May, Leading Global Currencies as Oil Prices Drop
3 articles · Updated · Business Insider Africa · Jun 18
Summary
Egypt’s pound has risen more than 7% against the dollar since early May, trading above 50 per dollar on Wednesday for the first time since March 3.
The rally followed a sharp oil-price drop after the US and Iran agreed to reopen the Strait of Hormuz, easing inflation and fiscal pressure on the energy-importing economy.
That shift has revived investor appetite: Egyptian dollar bonds have gained more than 3% on average since the deal, while Citigroup has recommended local-currency debt.
The rebound also builds on stronger external buffers, with Egypt’s net foreign assets hitting a record $29.54 billion in January under reforms tied to its $8 billion IMF program.
Is Egypt's currency rally a bubble built on a fragile US-Iran truce that experts warn could soon collapse?
Will this economic windfall tempt Egypt to abandon the painful reforms its future stability depends on?
Will sea mines and insurance costs in the Strait of Hormuz sink Egypt's promised economic recovery?
Egypt’s Pound Becomes World’s Top-Performing Currency in 2026: Drivers, Risks, and Economic Impact
Overview
In June 2026, the Egyptian Pound became the world’s best-performing currency, driven by a series of global events. A key turning point was the US-Iran agreement to reopen the Strait of Hormuz, which led to the restoration of oil supply flows and a sharp drop in oil prices. This eased global inflation concerns and directly benefited Egypt’s economy. As a result, investor sentiment toward Egypt improved, and the Pound surged about 4% against the US dollar in just a few days. These interconnected developments highlight how global diplomacy and market shifts can quickly strengthen a nation’s currency.