Egypt's Economy Strained by Strong Dollar, Falling Gold Prices and IMF Talks

The euro traded around 57 Egyptian pounds at major banks, with rates ranging from 56.88 to 57.47 EGP per euro. Global gold and silver prices slipped more than 2 % after the U.S. Federal Reserve kept interest rates steady, pushing the ounce of gold to $4,155 and marking a third consecutive weekly loss.

In Kuwait, the price of 24‑karat gold reached 41.785 KD per gram, while in Palestine the 24‑karat gram sold for 395.35 ILS, with the ounce priced at 12,297.45 ILS. These local market movements reflect broader investor reactions to a strengthening U.S. dollar, which rose to its highest level in over a year.

Egypt faces mounting fiscal pressure as the central bank maintains a policy rate of 3.5‑3.75 % and the government anticipates a $13.5 billion rise in fuel subsidies. Debt service consumes over 60 % of the budget, amounting to roughly $50 billion, prompting discussions of a new partnership framework with the International Monetary Fund. Officials aim to boost private‑sector participation to more than 65 % of economic activity by 2030, while seeking lower‑cost external financing amid a constrained foreign‑exchange supply.