EGP - Egyptian Pound

Overview of the Egyptian Pound (EGP)

The Egyptian Pound, also known as EGP (Egyptian Pound), in Arabic is "جنيه مصرى" (Genēh Maṣri). The official currency of Egypt since 1885.

One Egyptian pound is divided into smaller units, equal to 100 piastres/ersh or 1,000 millieme/Mallīm.

Egypt, or the Arab Republic of Egypt, is a country located at the northeastern corner of Africa and the Sinai Peninsula in the southwestern corner of Asia. Egypt is a country with relatively significant influence over the nations in the region, regarded as a power in North Africa, the Middle East, and the Islamic world.

The Egyptian Pound plays a crucial role in the national economy. This currency also has significant influence in the region; however, on a global scale, the EGP is still limited compared to major currencies like the USD, EUR, or GBP. However, the Egyptian Pound still holds a certain strength in international trade and investment transactions related to the African region, promoting the country's participation in the global economy.

History of the Egyptian Pound (EGP)

• Early period: Egypt and Turkey both used the Ottoman piastre. But by the time of Muhammad Ali, Egypt issued its own currency. In 1834, an Egyptian coin was introduced based on a bimetallic standard (gold and silver) called the Maria Theresa Thaler, valued at 20 piastres.

• In 1885, Egypt introduced the Egyptian Pound, also known as the junieh, transitioning to a full gold standard. One Egyptian pound is equivalent to 7.4375 grams of pure gold, with an exchange rate of 97.5 piastres = 1 pound sterling. The Egyptian pound gradually replaced the piastre and became the main currency.

• During World War I, the Egyptian Pound was pegged to the British Pound at a rate of 1 Egyptian Pound = 1 pound 6 pence sterling, maintained until 1960 with a slight devaluation. The Egyptian pound then shifted to being pegged to the US dollar at an exchange rate of 1 Egyptian pound = 2.3 USD.

The Egyptian pound was once used in Anglo-Egyptian Sudan (1899–1956), in Cyrenaica, a British colony (1942–1951), and in Palestine under British rule (1918–1927).

The Egyptian Pound (EGP) Denominations

In Egypt today, the Egyptian Pound is circulated in both banknotes and coins with the following main denominations:

• Coin denominations: 25p, 50p, £1

• Denominations of banknotes: 25pt, 50pt, £1, £5, £10, £20, £50, £100, £200

History of the Egyptian Pound (EGP)

Emerging from the complexities of Egypt's ancient trade systems, the Egyptian pound has undergone significant transformations throughout its history, reflecting both economic and political shifts. Initially, the currency system was based on barter and the use of various goods as a medium of exchange, such as grain and gold rings. However, the introduction of the Egyptian pound in the late 19th century marked a pivotal transition to a more standardized monetary system, aligning Egypt with global economic practices. This currency was pegged to the British pound, emphasizing Egypt's colonial ties and the influence of British governance. As the 20th century approached, nationalists sought to consolidate Egypt's economic independence, leading to reforms that aimed to establish a distinctly Egyptian identity for the pound. Each phase in the evolution of the currency has not only signified shifts in economic policy but has also been a reflection of Egypt's broader historical narrative, intertwining international influences with national aspirations.

Factors affecting the value of the Egyptian Pound (EGP)

The value of the Egyptian pound is influenced by many factors, including economic, political, and national monetary policies, specifically:

• Monetary policy: The intervention decisions of the Central Bank of Egypt regarding bank interest rates, as well as monetary control measures, also significantly impact the value of the currency.

• The economic situation in Egypt: Economic indicators such as GDP, unemployment rate, and national inflation all affect the value of the Egyptian pound. A strong economy often has a strong currency.

• Trade balance: If the trade balance in Egypt is imbalanced, it will also affect the value of the Egyptian pound. Simply put, if exports exceed imports, the value of the currency will increase, and vice versa.

• Foreign investment: The level of foreign investment attraction also affects the value of the EGP. If many foreign investors invest in Egypt, the demand for this Egyptian pound currency will increase.

• Political situation: Political stability plays an important role in strengthening confidence in the currency. Political fluctuations can reduce the value of the EGP.

• Global situation: Global factors such as oil price fluctuations and exchange rates with other strong currencies (like USD, EUR) also affect the value of the EGP.

• Financial policy: The Egyptian government will intervene in spending and tax policies, which can also impact the economy and thereby affect the value of the currency.

The above factors often interact with each other, creating a complex picture of the value of the Egyptian pound. Don't forget to visit Gocuco regularly to track the most accurate real-time exchange rate of the Egyptian Pound!