October 25, 2026
The decline of the Egyptian pound to historic levels against the US dollar has raised widespread fears of a new inflationary wave, coinciding with the rise in global energy prices and the disruption of supply chains. The dollar recorded 55.77 pounds in bank transactions on Sunday, compared to about 51 pounds in recent weeks, which raises questions about the repercussions of this on the prices of goods and services and import and production costs. These developments come despite the Automatic Pricing Committee for Petroleum Products announcing the stabilization of fuel prices until the end of 2026, amid sharp fluctuations in global energy markets, which imposes additional pressure on the Egyptian economy.
In the face of these repercussions, Prime Minister Mostafa Madbouly chaired a meeting on Sunday of the Central Committee for Crisis Management, to follow up on the effects of geopolitical escalation in the region and its repercussions on global markets. The official spokesman for the Presidency of the Council of Ministers, Counselor Mohamed Adel, stated that the meeting discussed the impact of international tensions on energy markets and transportation, shipping and production costs, during which Madbouly directed the need to increase the safe stock of food commodities and petroleum products to ensure that local needs are met. The meeting also reviewed the position of the strategic stock of basic commodities, medicines, medical supplies and fertilizers, stressing that their levels are safe and reassuring, in light of the additional inflationary burdens imposed by regional developments on countries that depend on imports.
In his reading of the local impact of exchange rate movements, economic expert Muhammad Anis explained that the dollar’s movement from 50 to 55 pounds, an increase of approximately 10%, may be financially absorbable, and gives traders space to deal with the differences without the need to automatically raise prices. He added that he does not expect a direct impact on commodity pricing as long as the dollar is below the level of 56 pounds, warning at the same time that exceeding this range may change current estimates, noting that the size of the impact remains linked to the extent of the continued rise of the US currency and companies’ dependence on imported components and their ability to absorb import costs.
For his part, journalist Ahmed Moussa, while presenting his program “On My Responsibility,” pointed out that the continued instability in the global economy and international conflicts are having direct repercussions on the Egyptian markets, including the stock market and the price of the dollar. He stressed that the state of uncertainty makes market scenarios open, pointing out that the rise in oil and energy prices and the costs of electricity and gas exacerbate inflationary pressures globally.
