The Dollar Falls 5 Pounds From Its Peak: What Sits Beneath the Number

The dollar has fallen below 50 pounds at most Egyptian banks, down roughly five pounds from the 54.80 it reached in March.

Reading the headline number alone, however, misses the picture, because the decline coincides with stronger dollar inflows into the Egyptian market.

Foreign currency reserves stood at $55.07 billion at the end of June, while remittances from Egyptians working abroad rose sharply to about $39.2 billion in the first ten months of the 2025/2026 fiscal year.

That gives the foreign exchange market deeper dollar liquidity, easing pressure on the US currency against the pound.

It does not follow that the dollar is inevitably heading to 48 pounds, since the exchange rate still turns on supply and demand and on flows from remittances, tourism, exports and investment.

The decisive question is therefore whether those dollar sources hold up, because the durability of the inflows will determine whether the current decline is a temporary move or the start of a longer period of stability.

Key terms explained:

Foreign currency reserves: The central bank's holdings of foreign currencies and gold, used to cover imports, service debt and support the currency.

Remittances: Money sent home by Egyptians living abroad — one of the economy's largest sources of foreign currency.

FX market: The market where currencies are exchanged and the pound's value against the dollar is set.

Supply and demand: The volume of dollars offered in the market against the volume sought, the primary driver of the exchange rate.

Dollar liquidity: Banks holding enough dollars to meet requests from importers and individuals without delay.

Fiscal year: The state's accounting year, which in Egypt runs from 1 July to 30 June.