What Currency Does Egypt Use? A Guide to the Egyptian Pound

What Currency Does Egypt Use?

The official currency of Egypt is the Egyptian pound (EGP). One Egyptian pound is made up of 100 piastres. The smallest denominations are 25 piastres and 50 piastres‚ both of which are available in coin or note form. Notes also come in the following denominations⁚ 1‚ 5‚ 10‚ 20‚ 50‚ 100 and 200.

The Egyptian Pound

The Egyptian pound‚ or gineih‚ is the currency of Egypt. It is divided into 100 qirsh (قرش)‚ or 1000 malleem ( مليم). The Egyptian pound is represented by the symbol LE‚ and its ISO 4217 currency code is EGP. The Egyptian pound is a relatively old currency‚ with its origins dating back to the 19th century. It replaced the Egyptian piastre in 1834‚ and was originally based on a bimetallic standard of gold and silver. The Egyptian pound was also used in Anglo-Egyptian Sudan between 1899 and 1956‚ and Cyrenaica when it was under British occupation and later an independent emirate between 1942 and 1951. It also circulated in Mandatory Palestine from 1918 to 1927‚ when the Palestine pound was introduced.

The Egyptian pound is currently a floating currency‚ meaning its value fluctuates based on market forces. Its value has been affected by a number of factors in recent years‚ including the global economic downturn‚ the Arab Spring uprisings‚ and the country's political instability. The Egyptian pound has also been affected by the country's reliance on tourism and foreign investment. In recent years‚ the Egyptian government has taken steps to stabilize the economy and the Egyptian pound‚ including implementing structural reforms and attracting foreign investment.

The Egyptian pound is widely used throughout Egypt‚ both for domestic transactions and for international trade. It is also used for online payments and for exchanging money at banks and exchange bureaus. The Egyptian pound is a relatively stable currency‚ and its value is generally considered to be reliable. However‚ it is important to keep in mind that the value of the Egyptian pound can fluctuate‚ so it is advisable to exchange money only when necessary.

History of the Egyptian Pound

The history of the Egyptian pound is a long and complex one‚ dating back to the early 19th century. At the beginning of the 19th century‚ Egypt and Turkey shared a common currency‚ the Ottoman piastre‚ divided into 40 paras. However‚ under Muhammad Ali‚ Egypt started to issue its own coinage‚ and in 1834‚ by which time Egypt was now nominally independent from Ottoman rule‚ a khedival decree was issued‚ adopting an exclusively Egyptian monetary system whereby Egypt went into a silver and gold bimetallic standard based on the Maria Theresa thaler rated at 20 piastres. The Maria Theresa thaler was a popular silver trade coin in the region around that time. In the wake of this currency reform‚ Egypt minted a gold coin known as the bedidlik‚ equal to 100 piastres‚ and a silver rial coin of 20 piastres corresponding to the Maria Theresa Thaler. In 1839‚ a piastre contained 1.146 grams of silver‚ and meanwhile the British gold sovereign was rated at 97.5 piastres. While 100 Egyptian piastres and the bedidlik coin were referred to as a pound in the English speaking world‚ this was not the principle unit in the new Egyptian monetary system of 1834. Reference to an Egyptian pound unit of account appeared in 1884 on a E50 promissory note signed by General Gordon at the Siege of Khartoum‚ but it wasn't until the next year in 1885 that this unit of account would become the official unit.

Meanwhile‚ back in 1840‚ despite Egypts separate coinage‚ it was agreed under the Turkish-Egyptian treaty dated that same year‚ that the Turkish and Egyptian strikes should nevertheless maintain equal value. However‚ in 1844‚ the Ottoman piastre was devalued in conjunction with the creation of a new Ottoman lira unit‚ and Egypt didn't follow suit. Hence the Egyptian and Turkish units split from each other in value‚ with the Egyptian unit continuing its exchange value of 97.5 piastres to the pound sterling. In 1885‚ Egypt went into a purely gold standard‚ and the Egyptian pound unit‚ known as the juneih‚ was introduced at E1 7.4375 grammes of fine gold. This unit was chosen on the basis of the gold content in the British gold sovereign and maintaining the exchange value of 97.5 piastres to the pound sterling‚ and it replaced the Egyptian piastre (qersh) as the chief unit of currency. This reform resulted in the Maria Theresa Thaler being adjusted to 21 piastres‚ with 20 piastres now being rated at 5 French francs‚ and the foreign exchange rates were fixed by force of law for the important currencies which had become acceptable in the settlement of internal transactions. It wasn't however until 1899 that banknotes started to appear with the word pounds on them‚ written in English.

Meanwhile‚ the piastre continued to circulate as 1/100 of a pound‚ the para was discontinued in 1909‚ and the piastre was divided into tenths (عشر القرش oshr el-qirsh ). These tenths were renamed milliemes (malleem) in 1916. Then‚ at the outbreak of World War I‚ with the gold specie standard being suspended in the UK‚ the Egyptian pound used a sterling peg of one pound and sixpence sterling to one Egyptian pound. Inverted‚ this gives E0.975 for one pound sterling. This exchange value of 97.5 piastres to the pound sterling continued until the early 1960s when Egypt devalued slightly and switched to a peg to the United States dollar‚ at a rate of E1 US2.3. The Egyptian pound was also used in Anglo-Egyptian Sudan between 1899 and 1956‚ and Cyrenaica when it was under British occupation and later an independent emirate between 1942 and 1951. It also circulated in Mandatory Palestine from 1918 to 1927‚ when the Palestine pound was introduced.

Denominations of the Egyptian Pound

The Egyptian pound is available in a variety of denominations‚ both in coins and banknotes. The smallest denominations are 25 piastres and 50 piastres‚ both of which are available in coin or note form. Notes also come in the following denominations⁚ 1‚ 5‚ 10‚ 20‚ 50‚ 100 and 200. The 10- and 20-pound notes are made out of polymer plastic paper as of July 6‚ 2022. The Egyptian pound is also available in a variety of commemorative coins‚ such as those celebrating historical events or cultural figures.

The denominations of the Egyptian pound have changed over time‚ as the country has adapted to changes in its economy and the global financial system. The Egyptian pound was originally based on a bimetallic standard of gold and silver‚ but it has since moved to a fiat currency system‚ where the value of the currency is determined by the government. The denominations of the Egyptian pound have also been affected by inflation‚ which has eroded the purchasing power of the currency over time.

The denominations of the Egyptian pound are used for a variety of transactions‚ both domestic and international. They are used for everyday purchases‚ such as groceries‚ transportation‚ and entertainment. They are also used for larger transactions‚ such as real estate purchases and investments. The Egyptian pound is also used for international trade‚ with businesses and individuals using it to exchange goods and services with other countries.

Exchange Rates

The exchange rate of the Egyptian pound (EGP) fluctuates against other currencies‚ primarily the US dollar (USD)‚ based on market forces. These forces include factors such as global economic conditions‚ political stability‚ interest rates‚ and demand for the currency. The exchange rate can vary significantly from day to day‚ and even within a single day. It is important to keep up with current exchange rates if you are planning to travel to Egypt or exchange currency.

You can find up-to-date exchange rates for the Egyptian pound on various online platforms‚ such as Google Finance‚ XE.com‚ and other financial websites. These websites provide real-time exchange rates‚ historical data‚ and currency converters. You can also check with your bank or a currency exchange bureau for the most current rates.

The exchange rate for the Egyptian pound has been particularly volatile in recent years. In 2023‚ the Egyptian pound depreciated significantly against the US dollar‚ reaching a record low. This depreciation was attributed to a number of factors‚ including the global economic slowdown‚ the war in Ukraine‚ and Egypt's economic challenges. The Egyptian government has implemented measures to stabilize the currency‚ including a floating exchange rate regime and a commitment to structural reforms. However‚ the exchange rate remains sensitive to global events and economic conditions.

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