Currency traders in Egypt are reportedly enticing tourists to sell their dollars in the black market, where the exchange rate is higher than the official rate, according to sources from a currency exchange company and a bank branch manager.
The dollar’s black market rate is currently around EGP 39, approximately EGP 8 higher than the official rate offered by banks and exchange companies, according to observers.
The bank branch manager revealed that black market traders have various tactics to connect with tourists and buy their currency at black market rates. The president of the currency exchange company noted that some tourists, especially in tourist cities like Hurghada, have started visiting company branches to buy currency before leaving Egypt. This is after they have sold their currency to black market traders, transforming from a source of foreign cash for the companies to currency buyers.
Banks and exchange companies have been facing a foreign cash shortage since the first quarter of 2022. The Russian-Ukrainian war led to the withdrawal of indirect foreign investments of about $22 billion from Egypt, financed by banks and the Central Bank.
Over more than a year, the dollar’s exchange rate against the Egyptian pound has increased by about 96%, rising from EGP 15.76 on March 20, 2022, to EGP 30.94 in today’s transactions.
