Egyptian Pound Surges to World's Top-Performing Currency Amid Oil Price Drop

The Egyptian pound has appreciated by more than 7 % against the U.S. dollar since early May, making it the best‑performing currency worldwide over that period. The rally followed a sharp decline in global oil prices after the United States and Iran reached an agreement to reopen the Strait of Hormuz, easing import‑price pressure on Egypt, a major oil importer.

Lower energy costs have reduced Egypt’s foreign‑exchange outlays, boosted investor sentiment and helped lift the country’s net foreign assets to a record $29.54 billion. Egyptian dollar‑denominated bonds have risen over 3 % and local‑currency bonds have attracted new demand. Portfolio manager Thys Louw noted that “the pound could return closer to its pre‑crisis level of around 47.9 per dollar.” The gains occur within the framework of Egypt’s $8 billion IMF‑backed reform programme, which supports a flexible exchange rate and continued fiscal consolidation.