CBE Governor explains reasons for Egyptian pound’s historic drop against US dollar

Central Bank of Egypt (CBE) Governor Hassan Abdalla reaffirmed the bank’s commitment to a flexible exchange rate policy in his first comments following the Egyptian pound reaching a historic low against the US dollar.

The Egyptian pound closed at 55.35 per dollar in commercial bank trading on Thursday, a record low that surpassed the previous historic peak of LE 54.75 reached last April following the US-Iranian military escalation.

Speaking during the panel session titled “Foreign Currency Resources and Debt Management” at the Egypt 2026 Forum, Abdalla stated that the exchange rate moves dynamically in response to shifting economic conditions surrounding Egypt, emphasizing that such fluctuations are completely normal given current circumstances.

Abdalla called on the public to understand currency movements in light of surrounding regional and global developments, stressing that what would actually be concerning is a fixed exchange rate despite changing conditions. He also urged the public not to give in to unwarranted anxieties regarding currency fluctuations.

The governor emphasized the resilience and capability of the Egyptian banking system to navigate rapid international and regional developments.