Dr. Mohamed El-Gohary, Head of the Oxford Center for Economic Research and Studies, described the decline of the US dollar against the Egyptian pound by about 58 piasters over the past two weeks as a faster drop than the general trend. He attributed this to several reasons, most notably the inflow of foreign currencies, increased remittances from Egyptians abroad, and higher revenues from tourism and exports, which led to a shortage of dollar supply in the local market. He pointed out that this will positively reflect on the Egyptian citizen by improving purchasing power.

El-Gohary explained that the decreased demand for dollars from importers caused import activity to decline or orders to be delayed, reducing the need for dollars during this period. Additionally, foreign investors sold debt instruments, and he added: “Some investors may sell their dollars against the pound to realize profits or adjust their positions, which increases the local supply of dollars.”

The head of the Oxford Center for Economic Research and Studies confirmed that relative stability in inflation rates allowed the Central Bank to maintain interest rates and support the local currency. Furthermore, confidence in fiscal and monetary policies improved after implementing structural reform measures, and international institutions’ expectations about Egypt’s ability to meet its obligations grew, all factors that strengthened the pound against the US dollar.

El-Gohary emphasized that true stability is not achieved only through the dollar’s decline but through the strength of the real economy and its ability to generate sustainable hard currency from within the Egyptian market. This is currently evident in the increased revenues from the Suez Canal, tourism, and rising foreign currency inflows from Gulf investments in infrastructure and energy projects.

The head of the Oxford Center for Economic Research and Studies pointed out that the decline in the dollar price against the pound will lead to a decrease in the cost of imports of fuel and food commodities, which will improve citizens’ purchasing power amid the reduced cost of imports.