Pound at record low: in Cairo the weak exchange rate shows up at the butcher's counter

What happened

On Thursday, 22 October, the dollar rose above 55 pounds at Egyptian bank counters during the day, its highest level ever. Major banks such as the National Bank of Egypt and Banque Misr were selling dollars at around 55.35 pounds by the close, almost one pound more than in the morning. By Monday, 26 October, the rate stood at about 55.77 pounds, according to the radio station Nile FM.

The independent platform Zawia3 calculates that the pound has lost about 13.8 percent of its value since late February, before the escalation of the war between the US and Iran, and 6.4 percent since the start of October alone. On the same day, Prime Minister Mostafa Madbouly said oil was at around 110 dollars a barrel, while the budget had assumed 75 dollars.

Almost at the same time, Madbouly announced at Egypt Forum 2026 that the minimum wage in the public sector would rise from 8,000 pounds today to 15,000 pounds by fiscal year 2029/30. Around 4.5 million state employees would be affected. It is a target, not a measure already in force.

The mood on the ground

People feel the exchange rate mostly when they shop. According to Al Ain, meat has become about 15 percent more expensive; a kilo of local beef costs between 490 and 550 pounds depending on the area and the cut. Packaged cheese has risen by around 20 percent, with some packs costing 20 to 30 pounds more than in the summer. Refrigerators and washing machines have gone up by about 5 percent.

Traders' associations in Cairo, Giza and Alexandria point to higher costs for animal feed, transport, insurance and imported raw materials. Feed corn, for example, now costs about 17,000 pounds a ton instead of around 12,000. Economists disagree: one considers a return towards 50 pounds possible if a regional deal is reached; another expects continued pressure and a possible interest rate hike by the central bank.

Central bank governor Hassan Abdalla called the fluctuations normal and defended the flexible exchange rate. He urged the public not to give in to unwarranted anxiety. The fact that he felt such an appeal was necessary shows how much the rate is on people's minds.

The difference in coverage is striking: the state-aligned Al-Ahram reported the record soberly with a table of bank rates, without naming causes or consequences. The independent platform Zawia3, by contrast, placed the slide in the context of war, oil prices and the budget gap, and points to its own reporting on the black market and outflows of short-term capital.

Voices from the media