Egypt's Central Bank Unveils Five-Year Plan for Global Pound Trading and Lower Inflation

The governor of Egypt’s central bank presented a five-year plan aimed at making the Egyptian pound convertible and tradable in international markets, including opening pound-denominated accounts abroad. He said inflation should fall to 7% with a two-point margin in the second half of 2027 and to 5% by 2029. He also reported net international reserves of about $57.3 billion and strong banking-sector capital and asset-quality indicators.

Governor Hassan Abdallah presented the five-year goal at Egypt’s 2026 forum. It envisions the pound becoming legally convertible and traded abroad, allowing accounts denominated in pounds to be opened in overseas markets for cross-border use. Inflation has fallen from near 38%—some food items exceeded 73%—to about 13%; targets are 7% ±2 points in late 2027 and 5% by 2029.

Reserves are about $57.3 billion, covering 102% of obligations due within a year versus earlier 70–80%. He cited 19% capital adequacy, 2.6% return on average assets, 1.8% nonperforming loans, and over 87% provision coverage. Two digital banks are near launch; remote account opening via digital financial identity is planned.