Since the beginning of the year, the official exchange rate has moved within a relatively stable range. In these instances, the official rate often converges with the parallel market rate that emerges during periods of high demand and scarcity. This temporary abundance of cash calmed the market and led to the total disappearance of the parallel market. The long-term exchange rate does not change significantly over a few months, as it reflects accumulated structural imbalances. The answer to whether temporary stability can become permanent lies in deep reforms to the ‘real economy,’ rather than in the exchange market or monetary decisions alone.

Source: Egypt Independent January 03, 2026 14:46 UTC