The Egyptian Pound (EGP) is the official money used in Egypt, a country famous for its pyramids and ancient history. 

When you go to Egypt, you use the Pound to buy food, and souvenirs, or pay for transportation. 

The symbol for the Egyptian Pound is E£, and people also use the abbreviation EGP.

What is the Egyptian Pound (EGP)?

The Egyptian Pound is the currency Egyptians use daily to buy and sell goods and services. This currency is important because it makes trade and business possible inside Egypt. 

It is used in all transactions across the country, from local markets and shopping centers to major industries like tourism and trade. 

The Egyptian Pound’s currency code is EGP, commonly abbreviated as LE or E£, which stands for Livre Égyptienne, reflecting Egypt’s historical ties with the French language.

The Egyptian Pound is used for purchasing goods and services across the country. 

History of the Egyptian Pound

The history of the Egyptian Pound goes back almost 200 years. It was first introduced in 1834 and replaced the piastre, which was used before then. 

Egypt used to be part of the Ottoman Empire, and many different currencies from countries like Turkey and Europe were used for trade.

Over time, Egypt needed its currency. It helped the country have a more organized financial system. 

In the beginning, the Egyptian Pound was tied to the British Pound because Egypt had close connections with Britain. 

But after Egypt gained independence in 1952, the country began managing its currency differently, and now the Central Bank of Egypt oversees it.

Over the years, Egypt faced challenges like inflation (when prices go up) and currency devaluation (when the value of the currency goes down). 

Despite these difficulties, the Egyptian Pound continues to be essential to the country’s economy.

Exchange Rate System of Egyptian Pound

The Egyptian Pound follows a floating exchange rate system. This means that its value changes depending on how much people in other countries want to trade or exchange it for their own money. Egypt switched to this system in 2016 to stabilize the economy.

The exchange rate can change every day, but here’s an example of how 100 Egyptian Pounds (EGP) compares to other major currencies:

• 100 EGP = 2.06 USD (United States Dollar)​
• 100 EGP = 1.95 EUR (Euro)​
• 100 EGP = 1.67 GBP (British Pound Sterling)​
• 100 EGP = 1,548.64 NGN (Nigerian Naira)​
• 100 EGP = 171.25 INR (Indian Rupee)​

This system allows Egypt to adapt to changes in the global economy, but it also means the Egyptian Pound can lose or gain value quickly, depending on international trade, tourism, and other factors.

Subdivisions and Denominations of the Egyptian Pound

Just like many other currencies, it is divided into 100 piastres. This allows people to make smaller transactions. 

For example, if you want to buy something inexpensive, like snacks or small items, you may pay with piastres.

In Egypt, coins are commonly used for smaller, everyday purchases. The available coin denominations include 25 piastres, 50 piastres, and the 1-pound coin. 

People often use the 1 Pound coin for things like buying bus tickets, street food, or groceries.

For larger purchases, Egyptians use banknotes, which come in various values: 5 Pounds, 10 Pounds, 20 Pounds, 50 Pounds, 100 Pounds, and 200 Pounds. 

Each banknote has its distinct color and design, often featuring significant landmarks such as mosques, the Pyramids, and famous Egyptian figures. 

Bigger notes are typically used for paying rent, purchasing electronics, or making large shopping purchases.

Economy and Challenges of the Egyptian Pound

Egypt’s economy is diverse, but it also faces some challenges. Tourism is one of the most important sectors, as people from all over the world visit Egypt to see places like the Pyramids of Giza or take a cruise down the Nile River. 

When tourists come to Egypt, they exchange their foreign currency for Egyptian Pounds to pay for hotels, tours, and souvenirs.

Agriculture is another key part of Egypt’s economy. The country grows important crops like cotton, wheat, and rice. These crops are used both locally and for exports.

However, Egypt faces some economic challenges like inflation, unemployment, and fluctuations in global oil prices. 

The Central Bank of Egypt works hard to maintain the value of the Egyptian Pound and ensure that the economy stays stable.

How to Trade the Egyptian Pound (EGP)

To start trading the Egyptian Pound (EGP) in the forex market, you need a brokerage account that offers currency pair trading, which includes the EGP. 

Once your account is set up, you’ll have to transfer funds and access a forex trading platform. On the platform, you can trade the EGP against other currencies, like the U.S. Dollar (USD) or Euro (EUR).

There are different trading strategies you can use when trading EGP. Popular strategies include day trading, swing trading, and position trading. 

For example, if you believe the value of the USD/EGP pair will rise, you can buy the pair. Let’s say the USD/EGP pair is currently trading at 20. If it rises to 20.2 in two months, you could sell the pair for a profit.

How Strong Is the Egyptian Pound?

It is considered relatively strong compared to many other emerging market currencies. 

While it is not as strong as major currencies like the U.S. Dollar (USD), Euro (EUR), or British Pound Sterling (GBP), the EGP stood out in 2020 as one of the best performers among its peers, especially against the U.S. Dollar. 

This shows that while it has challenges, the Egyptian Pound holds a solid position in the region.

Conclusion

The Egyptian Pound (EGP) plays an essential role in Egypt’s economy and the daily life of its people. 

It allows Egyptians and tourists alike to carry out transactions smoothly, it may be that they’re buying a meal, paying for a service, or exchanging money.

Knowing the Egyptian Pound helps you see how Egypt’s economy works.

It may able be that you’re planning to visit Egypt or just want to learn more about global currencies, knowing about the EGP gives you a better sense of the country’s financial system.