US Dollar Exchange Rate Holds Steady Against Egyptian Pound on Ramadan Start

The United States Dollar exchange rate maintained relative stability against the Egyptian Pound on February 19, 2026, coinciding with the start of the holy month of Ramadan. This steadiness contrasted with typical market expectations that often anticipate currency fluctuations as banks adjust operational schedules to accommodate fasting hours.

Major Egyptian financial institutions reported only marginal deviations in USD exchange figures compared to the preceding day's closing rates, suggesting a managed market environment. This stability is supported by the Central Bank of Egypt's (CBE) active reinforcement of the local currency. The CBE announced that official net international reserves reached a record high of $52.59 billion by the end of January 2026, an increase of approximately $1.14 billion from the $51.4 billion recorded at the end of December 2025. This strategic bolstering of foreign currency assets is intended to buffer the Pound against external pressures during the consumption-heavy Ramadan period and support the cost stability of imported commodities.

Specific transactional rates across key commercial entities reflected this narrow trading band. The Commercial International Bank (CIB) posted buying rates at 46.96 EGP and selling rates at 47.06 EGP, displaying only slight adjustments from previous sessions. Other prominent banks, including Banque Misr and Banque du Caire, exhibited comparable, tightly constrained trading margins. Data from Banque du Caire, updated on February 18, 2026, showed a USD buy/sell rate of 46.9600/47.0600 EGP, mirroring the general market sentiment.

The stability is significant given the seasonal consumption surge inherent to Ramadan, which can increase demand by up to 150% compared to normal months. The CBE's commitment to its inflation target of 7% plus or minus 2% in the fourth quarter of 2026, following the February 2026 interest rate cuts, makes this period a critical test of monetary credibility. Notably, the January reserve increase was significantly driven by a nearly $2.6 billion rise in gold holdings, reaching $20.73 billion, even as foreign currency reserves saw a slight decline.

While institutional forecasts for the USD/EGP rate in 2026 generally cluster in the high-40s, reflecting confidence in a managed regime, external assessments, such as those from the IMF, suggest a potential for higher rates, reaching 54.05 EGP, contingent on portfolio flow volatility. The current calm, supported by robust foreign reserves, signals a successful initial navigation of a traditionally volatile period for domestic spending and currency management, with market focus fixed on sustained structural reforms and consistent foreign currency inflows.