Egypt aims to make Egyptian pound globally tradable within five years

Hassan Abdalla, Governor of the Central Bank of Egypt, announced an ambitious five-year plan to make the Egyptian pound a legally convertible currency outside of Egypt's borders. The initiative aims to allow the currency to be exchanged in other countries and enable the opening of bank accounts held in Egyptian pounds abroad, facilitating international transactions.

Speaking at the Egypt 2026 Forum, Abdalla noted that the central bank has already begun working toward this goal despite associated challenges. He emphasized that the move follows Egypt's recent classification by international financial institutions as a country implementing a flexible exchange rate system.

Regarding foreign exchange reserves, Abdalla reported that they currently stand at $57.3 billion. He stated that the central bank focuses on maintaining safe levels according to international standards rather than targeting a specific figure, specifically ensuring the ability to cover outstanding external obligations within one year. The reserve coverage ratio for these obligations has risen from 70%–80% to 102%.

Abdalla also addressed currency volatility, stating that fluctuations in the dollar rate against the pound should not cause panic. He argued that a fixed exchange rate system was never suitable for Egypt and that the current flexible system allows the currency to move according to market mechanisms. He highlighted economic improvements since the shift, including an increase in remittances from $22 billion to $47 billion and a decline in inflation from approximately 38% to nearly 13%.