Egyptian Pound (EGP)

What Is the Egyptian Pound (EGP)?

The Egyptian Pound (EGP) is the official currency of the Arab Republic of Egypt, as designated by ISO 4217, the International Standard for currency codes. The Egyptian pound's symbol is E\u00a3. The currency can likewise be noted by the symbol LE, which represents livre \u00e9gyptienne; French for Egyptian pound. The Egyptian pound is additionally utilized, unofficially, in the Gaza Strip and in parts of Sudan.

As of Sept. 20. 2021, one EGP is worth generally $0.064 U.S. dollars (USD).

Figuring out the Egyptian Pound (EGP)

The Egyptian pound (EGP) supplanted the Egyptian piastre in 1834. The new currency issue had a fixed rate bimetallic standard of gold and silver. The piastre kept on coursing as a 100th portion of the pound, basically turning into a one-penny coin. In 1916, the coin was isolated once more and renamed the millimes.

The EGP was tied first to the gold and silver bi-metal standard and afterward to the British pound sterling (GBP) until 1962. Egypt founded a central bank in 1961. The Central Bank of Egypt, situated in Cairo, turned into the Arab Republic's monetary authority and controlled the circulation of the Egyptian pound.

In 1962, Egypt changed the valuation of the pound and pegged it to the USD. The Egyptian pound was devalued with the USD in 1973 and without anyone else in 1978. The currency was to some extent pegged to the dollar until 2016 when the government chose to free float the currency so it could receive funding from the IMF.

The Central Bank of Egypt and the EGP

Seeing the value of the EGP fall, the Central Bank of Egypt stepped in and started a managed float in 2001. The managed float went on until 2016 when the bank ruled for permitting the currency to float freely once more. With this decision, the value of the currency dove.

After the central bank's decision to float the currency, the EGP devalued by 32.3% and kept on losing value. Additionally, the bank raised interest rates by 300 basis points to stem the expected inflation.

Egypt unpegged its currency to be free-floating in 2016 to receive a $12 billion bailout loan from the International Monetary Fund (IMF).

Before the float, a U.S. dollar was worth 8.8 Egyptian pounds. Though after this action, with the unpegging, a dollar was equivalent to around 15 Egyptian pounds. As of Sept. 20, 2021, one USD is worth 15.7 Egyptian pounds.

Different Names for the Egyptian Pound (EGP)

Egyptian banknotes feature both English and Hindu-Arabic numerals on one side and Arabic texts with Eastern Arabic numbers on the other. Egyptians have different shoptalk monikers for different denominations of the pound.

• Baku, or pack, for 1,000 EGP notes
• Arnab, or hare, for a million EGP banknotes
• Feel, or elephant, for 1,000,000,000 EGP bills

In 2011, Egypt presented 50 piastre and 1 pound coins, showing the essences of Cleopatra and Tutankhamun, and phased out bank notes for those denominations; notwithstanding, in 2016, Egypt once again introduced the notes due to coin deficiencies.

Egypt's Economy

The old country of Egypt lies on the Mediterranean and is a land wealthy in old history. The region saw the development of composing, agriculture, and organized religion and government.

Egypt was under Ottoman and British rule until it declared itself a republic in 1953. Many years of contribution in regional conflicts, remembering those for Yemen, the Sinai Peninsula, and the Gaza Strip, have negatively affected the nation, its economy, and its kin.

The economy of the Arab Republic of Egypt relies upon agriculture, petroleum, and the travel industry. There is as yet a wide difference in livelihoods and the distribution of wealth. Egypt's economy, similar to the remainder of the world, got pounded by the COVID-19 pandemic. The travel industry, specifically, was seriously affected, generating $1.8 billion in revenue among July and December 2020 compared to $7.2 billion in a similar period in 2019.

Interest rates were cut in response to the harming COVID-19 lockdown measures. Be that as it may, the country actually has one of the highest real interest rates in the world, which has assisted with selling treasuries and safeguard the currency yet discouraged borrowing.

High inflation turned into a big issue after Egypt was forced to execute austerity measures in exchange for getting financial assistance from the IMF. Actions, for example, climbing fuel prices, adding extra taxes on tobacco, and debasing the currency drove inflation to flood to 33% in July 2017.

Instructions to Trade the EGP

To trade EGP forex, you will require a brokerage account that permits currency pair trading with EGP. When you have an account made, you should transfer funds and download a forex trading platform.

You can utilize an assortment of trading strategies to trade EGP as you would with different currencies. These incorporate day trading, swing trading, and position trading. For instance, on the off chance that you anticipate the USD/EGP currency pair to increase, you can purchase a certain dollar amount of the currency pair. On the off chance that the currency pair is as of now 20 and in two months it has gone up to 20.2, you can sell the whole amount of your purchase for a profit.

The Bottom Line

The Egyptian pound is the official currency of Egypt, a currency that has gone through many changes over Egypt's long history. Today, a free-floating currency is a strong entertainer against its peer group and has reinforced against the dollar north of 2020/2021. It is expected to stay stable sooner rather than still up in the air by certain rating agencies, like Fitch.

Highlights

• Initially backed by precious metals, the Central Bank of Egypt stepped in and started a managed float in 2001 through 2016, when it changed to a free float.
• Egyptians have nicknames for various denominations of their currency, for example, baku, or pack, arnab, or hare, and feel, or elephant.
• The Egyptian Pound (EGP) is the official currency of the Arab Republic of Egypt, with the symbol E\u00a3.
• Before the float, a U.S. dollar was worth 8.8 Egyptian pounds. After this action, with the unpegging, a dollar was equivalent to around 15 Egyptian pounds.
• The EGP is likewise utilized as the unofficial currency in regions, for example, Sudan and the Gaza Strip.

FAQ

How Do You Convert the EGP to Dollars?

Genuinely changing one currency over completely to one more should be possible at any currency exchange counter. Large numbers of these are found at air terminals. Banks can likewise exchange certain currencies. Numerically switching EGP over completely to a dollar you would increase the EGP amount by .064, as 1 EGP equals .064 dollars.

What number of Egyptian Pounds to the Euro?

There are 18.44 Egyptian pounds to the euro as of Sept. 20, 2021.

What number of Egyptian Pounds to the British Pound?

There are 21.47 Egyptian pounds to the British pound as of Sept. 20, 2021.

Is the Egyptian Pound Pegged to the Dollar?

No, the Egyptian pound isn't pegged to the dollar. It was pegged to the dollar beginning in 1962 until the government concluded the currency would float freely in 2016.

How Strong Is the Egyptian Pound?

The Egyptian pound is a genuinely strong currency. It isn't on a similar level as the dollar, euro, or pound sterling, and is as yet classified as an emerging market currency, yet in 2020 it was the strongest entertainer against the dollar among its peers.