Goldman Sachs Forecasts US Dollar to Drop to 46 EGP within 12 Months Amid Broad Economic Recovery
US investment bank Goldman Sachs has projected that the US dollar exchange rate against the Egyptian pound will decline to approximately 46 EGP over the next 12 months. This optimistic forecast is underpinned by easing geopolitical tensions in the region and a notable improvement in domestic macroeconomic indicators, which are expected to bolster investor confidence and enhance the attractiveness of the Egyptian currency.
The bank clarified that the sustained improvement in macroeconomic conditions and a stabilizing external environment will support the Egyptian pound's performance in the coming period. It anticipates a significant reduction in pressures on the foreign exchange market, coupled with continued foreign currency inflows.
According to the report, the Egyptian pound remains undervalued by 13% to 15% against its fair value. This undervaluation suggests further room for currency appreciation, provided that current economic reforms persist and foreign exchange inflows into the Egyptian market continue unabated.
Goldman Sachs highlighted that the de-escalation of geopolitical risks in the region—particularly in light of recent developments regarding a ceasefire between the United States and Iran—could substantially improve the investment climate and drive capital flows back into emerging markets, including Egypt.
These projections come at a time when the US dollar has already experienced a marked decline against the Egyptian pound, currently trading at approximately 49.5 EGP in Egyptian banks, down from roughly 54 EGP at the beginning of last May.
In a related context, remittances from Egyptian expatriates have continued to smash records. During the period from July to April of the 2025/2026 fiscal year, remittances surged by 33.2% to reach roughly $39.2 billion, compared to $29.4 billion during the same period in the previous fiscal year.
Furthermore, the Central Bank of Egypt (CBE) announced that net foreign exchange reserves climbed to $53.134 billion by the end of May 2026, up from $51.451 billion at the end of December 2025. This robust reserve buffer significantly enhances the Egyptian economy's resilience to external shocks and further supports the stability of the exchange market.