Egypt’s Pound Becomes World’s Best-Performing Currency as Oil Prices Collapse

The currency has appreciated more than 7% against the dollar since early May after the US and Iran agreed to reopen the Strait of Hormuz, easing inflationary pressures on the North African economy.

Egypt’s pound has emerged as the world’s best-performing currency after a sharp decline in global oil prices eased pressure on the North African economy and renewed investor confidence, according to a report by Bloomberg.

The currency has strengthened significantly in recent weeks, rising more than 7% against the U.S. dollar since early May. On Wednesday, it traded above 50 pounds per dollar for the first time since March 3, making it the strongest-performing currency globally over the period.

The rebound follows a steep drop in oil prices after the United States and Iran reached an agreement to reopen the Strait of Hormuz, one of the world’s most important energy shipping routes. The move is expected to restore oil supply flows and reduce inflationary pressures, particularly for major energy importers such as Egypt.

For much of the year, the Egyptian pound had been under pressure as rising energy costs threatened to strain government finances and increase living costs for millions of Egyptians already grappling with years of high inflation. The decline in oil prices has reversed some of those concerns, improving the country’s economic outlook and attracting fresh investor interest.

According to Thys Louw, a portfolio manager at Ninety One in London, Egypt was among the markets most affected during the crisis, making it one of the biggest beneficiaries as investor sentiment improves. He noted that the pound could return closer to its pre-crisis level of around 47.9 per dollar.

The improving outlook has also boosted Egypt’s debt market. Dollar-denominated Egyptian bonds have gained more than 3% on average since the US-Iran agreement, ranking among the best-performing emerging-market bonds during the period. Citigroup analysts have also recommended Egypt’s local-currency bonds, citing expectations that lower oil prices will reduce economic pressures.

The latest gains build on an already improving financial position. Earlier this year, Egypt’s net foreign assets surged to a record $29.54 billion in January, rising by $4.02 billion in a single month, driven by fresh Gulf investments, the country’s currency reforms, and record remittance inflows from Egyptians abroad.

According to a report by Accra Street Journal, analysts say the growing foreign currency reserves provide a stronger buffer for imports, debt repayments, and overall economic stability as Egypt continues reforms under its $8 billion International Monetary Fund programme.

Source: Accra Street Journal 

Last Updated on June 19, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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