CBE Governor Defends Flexible Exchange Rate Amidst Historic Pound Depreciation

Central Bank of Egypt (CBE) Governor Hassan Abdalla has reiterated the bank's dedication to a flexible exchange rate policy following the Egyptian pound's unprecedented decline against the US dollar. The Egyptian pound concluded Thursday's trading at 55.35 per dollar in commercial banks, marking a new historic low that surpassed the previous record of LE 54.75 set in April after the US-Iranian military escalation.

During a panel session titled “Foreign Currency Resources and Debt Management” at the Egypt 2026 Forum, Governor Abdalla explained that the exchange rate fluctuates dynamically in response to evolving economic conditions affecting Egypt. He emphasized that these movements are natural given the current global and regional circumstances.

Abdalla urged the public to interpret currency movements within the context of surrounding regional and global developments, highlighting that a fixed exchange rate amidst changing conditions would be a cause for genuine concern. He also advised against succumbing to unnecessary anxiety over currency fluctuations.

The governor further underscored the robustness and capacity of the Egyptian banking system to effectively manage rapid international and regional shifts.