What Is The Money Called In Egypt? A Comprehensive Guide

The money called in Egypt is the Egyptian Pound (EGP), subdivided into 100 piastres; for financial planning and travel in Egypt, understanding this currency is crucial, and money-central.com provides comprehensive resources for managing your finances effectively. Let’s explore everything you need to know about Egyptian currency, exchange rates, and tips for managing your money in Egypt to help you make informed financial decisions.

1. What is the Official Currency of Egypt?

The official currency of Egypt is the Egyptian Pound (EGP). The Egyptian Pound is abbreviated as EGP, E£, or in Arabic as (ج.م). One Egyptian Pound is divided into 100 piastres, which are further subdivided into 1000 milliemes. It’s essential to familiarize yourself with these terms if you’re planning a trip to Egypt or dealing with Egyptian currency in any financial context.

Understanding Egyptian Pound Denominations

Egyptian currency primarily consists of banknotes and coins with various denominations to facilitate transactions. Here’s a detailed breakdown:

Banknotes:

25 piastres
50 piastres
1 pound
5 pounds
10 pounds
20 pounds
50 pounds
100 pounds
200 pounds

Coins:

10 piastres
25 piastres
50 piastres
1 pound

These denominations help in managing everyday transactions, whether you’re purchasing goods, paying for services, or tipping.

A Brief History of the Egyptian Pound

The Egyptian pound dates back to 1834, preceding which the currency was the piastre. The piastre was based on the Turkish kuruş, inherited when Egypt was part of the Ottoman Empire.

The pound was named after British currency, which at the time was the most important form of international finance.

2. Can You Use Credit and Debit Cards in Egypt?

Yes, credit and debit cards are widely accepted in many tourist areas in Egypt. However, relying solely on cards might not be the best strategy. It’s always wise to carry some local currency for smaller establishments and transactions.

Acceptance of Cards in Egypt

Most major hotels, established stores, and restaurants accept Mastercard and Visa. Contactless payments are also becoming increasingly common. However, smaller hotels, cafes, shops, and markets usually prefer cash. Keep in mind that American Express and Diners Club cards may not be as widely accepted, so it’s good to have an alternative payment method.

Egyptian Pound Currency

Hidden Fees and Charges

When using your card abroad, be aware of potential hidden fees. Check with your bank about any charges for using your card for payments in Egypt. These fees can include foreign transaction fees, ATM withdrawal fees, and currency conversion charges.

The Travelex Money Card

Consider using a Travelex Money Card for safer spending in Egypt. This prepaid card allows you to make contactless payments without hidden charges and helps you keep track of your holiday spending. It’s not linked to your bank account, minimizing the risk of losing all your funds in case of loss or theft. Note that a 2% fee applies to GBP loads, and a 5.75% fee is incurred when using the card in Egypt where the local currency isn’t offered.

3. Where Can You Exchange Currency for Egyptian Pounds?

Exchanging currency is a common need for travelers visiting Egypt. Fortunately, there are several convenient options available.

Currency Exchange Options in Egypt

Airports and Ports: Bureaux de change are available at airports and ports.
Banks: You can exchange money at any bank.
Hotels: Many hotels also exchange British currency for Egyptian pounds.

The exchange rates can vary by location, so it’s a good idea to shop around to get the best deal.

Using Euros in Egypt

While some establishments might accept euros, it’s generally best to exchange your currency for Egyptian pounds upon arrival. It’s straightforward to trade dollars, pounds, or euros for Egyptian pounds at banks.

4. Is it Possible to Buy Egyptian Pounds in the USA?

Obtaining Egyptian Pounds in the USA can be challenging due to limited availability and potential volatility in the currency market. However, it’s not impossible. Here are a few options:

Options for Purchasing EGP in the USA

Major Banks: Some major banks like Bank of America or Citibank may offer currency exchange services. However, they might need to order the currency, which could take several business days.
Currency Exchange Services: Companies specializing in foreign currency exchange, such as Travelex or Currency Exchange International (CXI), can be found in major cities.
Online Currency Exchange: Online platforms can provide EGP, but be cautious of exchange rates and fees. Ensure the service is reputable before making a transaction.

Due to the limited availability of EGP, it’s often more convenient to exchange your currency upon arrival in Egypt.

Is the Egyptian Pound a Closed Currency?

No, the Egyptian pound is not a closed currency. However, due to recent devaluation, it can be volatile. There may be a shortage of banknotes, affecting exchange rates. This can affect the availability of the currency both in the UK and the USA.

5. What is the Exchange Rate Between USD and EGP?

Understanding the exchange rate between USD and EGP is crucial for budgeting your trip or conducting financial transactions. The exchange rate fluctuates based on market conditions but knowing the approximate rate can help you make informed decisions.

Current Exchange Rate

As of September 2024, the approximate exchange rate is around 1 USD = 47.66 EGP. However, this rate can vary based on the source of the exchange, such as banks, exchange services, or online platforms. For the most up-to-date information, consult reliable financial resources.

Here’s a quick look at how this compares to historical data and other major currencies:

Currency Pair	Exchange Rate (Approximate)
1 USD to EGP	47.66
1 EUR to EGP	51.34
1 GBP to EGP	60.78

Disclaimer: These exchange rates are approximate and for informational purposes only. Actual rates may vary.

Factors Affecting the Exchange Rate

Several factors influence the USD to EGP exchange rate:

Economic Stability: Egypt’s economic stability plays a significant role. Factors like GDP growth, inflation, and unemployment rates can affect the currency’s value.
Government Policies: Government decisions on monetary policy, interest rates, and fiscal measures can impact the exchange rate.
Geopolitical Events: Regional and international events can cause fluctuations in the exchange rate.

6. How Does the Egyptian Economy Affect its Currency?

Egypt’s economic performance is closely linked to the value and stability of the Egyptian Pound (EGP). Understanding the key economic indicators and their impact can provide insights into the currency’s behavior.

Key Economic Factors Influencing the EGP

GDP Growth: A strong GDP growth typically strengthens the currency, as it indicates a healthy and expanding economy. Conversely, a slowing GDP can weaken the EGP. According to the World Bank, Egypt’s GDP growth was projected to increase, which could positively influence the currency.
Inflation Rates: High inflation erodes the purchasing power of the currency and can lead to devaluation. The Central Bank of Egypt closely monitors inflation rates to manage monetary policy effectively.
Unemployment Rates: High unemployment can strain the economy, reducing consumer spending and investment, which negatively affects the EGP. Efforts to lower unemployment rates can stabilize and strengthen the currency.
Trade Balance: A positive trade balance (more exports than imports) typically supports the currency, as it increases demand for the local currency. A negative trade balance can weaken the EGP due to increased demand for foreign currencies.
Foreign Investment: Inflows of foreign investment can boost the economy and increase demand for the EGP, strengthening its value. Conversely, outflows can weaken the currency.

Government Policies and Their Impact

The Egyptian government’s fiscal and monetary policies play a critical role in maintaining currency stability. Key policies include:

Interest Rate Adjustments: The Central Bank of Egypt uses interest rate adjustments to control inflation and stabilize the currency. Higher interest rates can attract foreign investment, increasing demand for the EGP.
Fiscal Measures: Government spending and taxation policies can impact economic growth and inflation. Prudent fiscal management can enhance investor confidence and support the currency.
Currency Controls: In some cases, the government may implement currency controls to manage exchange rates. These measures can have both positive and negative effects on the economy and the currency’s value.

Egyptian Pound in Hand

7. What are Some Tips for Managing Money in Egypt?

Effective money management is essential when traveling in Egypt to ensure you stay within your budget and avoid unnecessary expenses. Here are some practical tips:

Budgeting and Planning

Create a Detailed Budget: Before your trip, create a detailed budget outlining your expected expenses, including accommodation, transportation, food, activities, and souvenirs.
Track Your Spending: Keep track of your daily expenses to ensure you stay within your budget. Use budgeting apps or a simple spreadsheet to monitor your spending.

Currency Exchange Strategies

Research Exchange Rates: Monitor the exchange rates between your home currency and the Egyptian Pound to identify the best times to exchange your money.
Exchange Currency Wisely: Avoid exchanging large sums of money at airports or hotels, where exchange rates are typically less favorable. Banks and reputable exchange services offer better rates.
Use ATMs Strategically: ATMs are widely available in major cities and tourist areas. Withdraw larger amounts to minimize transaction fees, but be mindful of safety when carrying cash.

Payment Methods

Carry a Mix of Cash and Cards: While credit and debit cards are accepted in many establishments, it’s essential to carry cash for smaller vendors and in areas where card payments are not common.
Inform Your Bank: Before traveling, inform your bank that you will be using your card in Egypt to avoid any transaction issues or holds on your account.

Bargaining and Tipping

Bargain Respectfully: Bargaining is a common practice in markets and with street vendors. Negotiate prices respectfully and be prepared to walk away if the price is not acceptable.
Understand Tipping Customs: Tipping is customary in Egypt for various services, including restaurants, taxis, and hotel staff. A general guideline is to tip around 10-15% for good service.

Avoiding Scams

Be Wary of Unsolicited Offers: Be cautious of unsolicited offers or guides, especially in tourist areas. Verify the legitimacy of services before accepting them.
Use Reputable Transportation: Use reputable taxi services or ride-sharing apps to ensure fair pricing and safety. Agree on the fare before starting your journey.
Secure Your Valuables: Keep your valuables secure and be aware of your surroundings to avoid theft. Use hotel safes for important documents and valuable items.

By following these money management tips, you can ensure a smooth and enjoyable trip to Egypt while staying within your budget.

8. What Role Does Tourism Play in Egypt’s Economy and Currency Stability?

Tourism is a vital sector in Egypt’s economy, significantly influencing its GDP, employment rates, and foreign currency reserves. The stability of the Egyptian Pound (EGP) is closely linked to the performance of the tourism industry.

Economic Impact of Tourism

Contribution to GDP: Tourism contributes significantly to Egypt’s GDP, generating revenue through accommodation, transportation, attractions, and related services. Fluctuations in tourism can directly impact the country’s economic growth.
Employment Generation: The tourism sector provides employment opportunities for a large segment of the population, including jobs in hotels, restaurants, tour operations, and transportation. This helps reduce unemployment rates and stimulates economic activity.
Foreign Currency Earnings: Tourism is a major source of foreign currency earnings, as international tourists spend money in Egyptian Pounds. This influx of foreign currency helps stabilize the EGP and strengthens the country’s foreign exchange reserves.

Influence on Currency Stability

Demand for EGP: A thriving tourism industry increases the demand for the Egyptian Pound, as tourists need local currency for their expenses. This increased demand can help appreciate the value of the EGP against other currencies.
Foreign Exchange Reserves: Tourism revenue contributes to the country’s foreign exchange reserves, which are essential for managing the EGP exchange rate. Higher reserves provide the Central Bank of Egypt with more flexibility to intervene in the currency market and stabilize the EGP.
Investor Confidence: A strong tourism sector enhances investor confidence in the Egyptian economy, attracting foreign investment and further supporting the currency.

Challenges and Mitigation Strategies

Political Instability: Political instability and security concerns can deter tourists, leading to a decline in tourism revenue and negatively impacting the EGP. The government and tourism industry need to ensure safety and security for tourists to maintain stability.
Global Economic Conditions: Global economic downturns can reduce international travel, affecting tourism in Egypt. Diversifying tourism markets and focusing on domestic tourism can mitigate the impact of global economic conditions.
Pandemics and Health Crises: Health crises like the COVID-19 pandemic can severely disrupt tourism. Implementing health and safety protocols and promoting safe tourism practices are essential for recovery.

By addressing these challenges and implementing strategies to promote sustainable tourism, Egypt can maximize the economic benefits of the tourism sector and maintain the stability of the Egyptian Pound.

Egyptian Market

9. How Does Inflation Affect the Value of the Egyptian Pound?

Inflation is a critical economic factor that significantly impacts the value of the Egyptian Pound (EGP). Understanding how inflation affects the currency can help individuals and businesses make informed financial decisions.

The Impact of Inflation on the EGP

Reduced Purchasing Power: Inflation erodes the purchasing power of the EGP, meaning that the same amount of money buys fewer goods and services over time. High inflation rates can reduce the standard of living for Egyptians.
Currency Devaluation: High inflation can lead to the devaluation of the EGP against other currencies. As the purchasing power of the EGP decreases, its value in the international market declines, making imports more expensive and potentially increasing the cost of living.
Impact on Savings and Investments: Inflation reduces the real value of savings and investments denominated in EGP. If the inflation rate is higher than the interest rate on savings accounts or the returns on investments, the real value of these assets decreases.

Causes of Inflation in Egypt

Increased Money Supply: An increase in the money supply without a corresponding increase in economic output can lead to inflation. When there is more money chasing the same amount of goods and services, prices tend to rise.
Demand-Pull Inflation: Increased demand for goods and services, often driven by government spending or consumer spending, can push prices higher, leading to demand-pull inflation.
Cost-Push Inflation: Rising production costs, such as higher wages or increased raw material prices, can lead to cost-push inflation. Businesses may pass these higher costs on to consumers in the form of higher prices.
Devaluation of the EGP: Devaluing the EGP to improve export competitiveness can also lead to inflation, as it makes imports more expensive and increases the cost of imported goods.

Measures to Control Inflation

Monetary Policy: The Central Bank of Egypt uses monetary policy tools, such as adjusting interest rates and reserve requirements, to control inflation. Higher interest rates can reduce borrowing and spending, helping to curb inflation.
Fiscal Policy: The government can use fiscal policy measures, such as reducing government spending or increasing taxes, to reduce demand and control inflation.
Supply-Side Policies: Policies aimed at increasing productivity and improving the efficiency of the economy can help increase the supply of goods and services, reducing inflationary pressures.
Exchange Rate Management: The Central Bank can intervene in the foreign exchange market to manage the EGP exchange rate and prevent excessive devaluation, which can contribute to inflation.

By implementing effective measures to control inflation, Egypt can maintain the value of the EGP, protect the purchasing power of its citizens, and promote economic stability.

10. How Can You Send Money to Egypt from the USA?

Sending money to Egypt from the USA is a common need for individuals supporting family members, conducting business transactions, or making investments. Fortunately, several options are available for transferring funds securely and efficiently.

Methods for Sending Money to Egypt

Bank Transfers: Traditional bank transfers are a reliable method for sending money to Egypt. You can initiate a transfer through your bank in the USA, and the funds will be deposited into the recipient’s bank account in Egypt. However, bank transfers can be slower and may involve higher fees compared to other options.
Online Money Transfer Services: Online money transfer services like Western Union, MoneyGram, and Remitly offer a convenient and fast way to send money to Egypt. These services allow you to transfer funds online or through their mobile apps, and the recipient can receive the money in cash or through a bank deposit.
Digital Wallets: Digital wallets like PayPal can be used to send money to Egypt, provided that the recipient has a PayPal account. However, PayPal’s availability and usage in Egypt may be limited, so it’s essential to check the terms and conditions before using this method.
Specialized Money Transfer Apps: Several mobile apps, such as WorldRemit and Xoom, specialize in international money transfers. These apps offer competitive exchange rates, low fees, and fast transfer times.

Factors to Consider When Choosing a Method

Transfer Fees: Compare the transfer fees charged by different services to find the most cost-effective option. Some services may charge a fixed fee, while others may charge a percentage of the transfer amount.
Exchange Rates: Check the exchange rates offered by different services to ensure you get the best value for your money. Be aware that exchange rates can fluctuate, so it’s essential to monitor them closely.
Transfer Speed: Consider the transfer speed offered by different services. Some services offer instant transfers, while others may take several business days to process the transaction.
Convenience: Choose a method that is convenient for both you and the recipient. Consider factors such as the availability of online services, the location of physical branches, and the recipient’s ability to access the funds.
Security: Ensure that the money transfer service you choose is reputable and secure. Look for services that use encryption and other security measures to protect your financial information.

Tips for Sending Money to Egypt

Compare Services: Compare the fees, exchange rates, and transfer times offered by different money transfer services before making a decision.
Check Recipient Details: Double-check the recipient’s bank account details and contact information to avoid errors or delays in the transfer.
Be Aware of Regulations: Be aware of any regulations or restrictions on international money transfers, such as limits on the amount of money you can send or requirements for reporting large transactions.
Keep Records: Keep records of your money transfers, including the transfer date, amount, fees, and confirmation numbers, in case you need to track the transaction or resolve any issues.

By considering these factors and following these tips, you can send money to Egypt from the USA safely, efficiently, and cost-effectively.

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FAQ: Egyptian Currency (EGP)

1. What is the money called in Egypt?

The money called in Egypt is the Egyptian Pound (EGP), which is subdivided into 100 piastres.

2. What are the denominations of Egyptian Pound banknotes?

Egyptian Pound banknotes come in denominations of 25 piastres, 50 piastres, 1 pound, 5 pounds, 10 pounds, 20 pounds, 50 pounds, 100 pounds, and 200 pounds.

3. Are credit cards widely accepted in Egypt?

Yes, credit cards (especially Visa and Mastercard) are widely accepted in major hotels, stores, and restaurants in tourist areas.

4. Can I use US dollars or Euros in Egypt?

While some establishments may accept US dollars or Euros, it is best to exchange your currency for Egyptian Pounds upon arrival in Egypt.

5. Where can I exchange currency for Egyptian Pounds in Egypt?

You can exchange currency at banks, bureaux de change at airports and ports, and many hotels.

6. How does tourism affect the Egyptian Pound?

Tourism increases demand for the Egyptian Pound, helps stabilize the currency, and contributes to the country’s foreign exchange reserves.

7. What factors influence the exchange rate between USD and EGP?

Economic stability, government policies, geopolitical events, and market speculation influence the exchange rate between USD and EGP.

8. How does inflation affect the value of the Egyptian Pound?

High inflation reduces the purchasing power of the EGP, can lead to currency devaluation, and reduces the real value of savings and investments.

9. Is it easy to buy Egyptian Pounds in the USA?

Purchasing Egyptian Pounds in the USA can be challenging due to limited availability. Major banks or specialized currency exchange services may offer this service.

10. What are some tips for managing money in Egypt?

Budget and plan your expenses, track your spending, use ATMs strategically, carry a mix of cash and cards, and be aware of bargaining and tipping customs.