Standard Chartered Lowers Egypt Dollar Forecast and Sees 11% Inflation in 2026

Standard Chartered has revised its forecasts for the U.S.

dollar versus the Egyptian pound, projecting a rate of EGP 47.5 in the first quarter of 2026 and stabilization around EGP 49 by year-end, reflecting improved dynamics in Egypt’s dollar exchange rate.

The bank attributed the improvement in Egypt’s dollar exchange rate to stronger foreign currency inflows, ongoing structural reforms, and the rebuilding of net foreign assets.

Lower Inflation and Growth Outlook

The report expects inflation to decline to around 11% by June 2026, providing the Central Bank of Egypt with greater flexibility to ease monetary policy and reduce financing pressures on companies.

Macroeconomic Growth

Real GDP growth is projected to rise to 4.5% in fiscal year 2026, driven by stronger activity in trade, manufacturing, hydrocarbons, tourism inflows, and stable Suez Canal revenues.

Analysts believe that improving Egypt’s dollar exchange rate stability will open new avenues for long-term investment.