28 Jan 2025
Do you know the global impact of the Egyptian Pound and how it affects an online money transfer to Egypt? Egypt is a culturally enriched country with a vibrant history. The Egyptian currency has had a significant evolution in history. Almost 9 million immigrants from 133 different countries live in Egypt. The reason for the significant number of immigrants is the economic growth opportunities. Although Egypt's currency is not as strong as other European countries, it offers a qualitative life. Egyptian immigrants must know about the amazing facts of Egyptian pounds to understand the currency exchange system.
Egypt is a culturally intellectual country. In ancient times, Egypt had no currency and relied on a barter system to buy goods and services. With time, people started exchanging things for gold and silver. Gold and silver are commonly found in Egypt and are highly valued. With the development, the country started adopting the currency system. From coins to pounds, the currency evolved. Egyptian pond history dates back centuries, so let's dive into the article to learn the 10 amazing facts about the Egyptian pound:
In the times of Pharaoh, there was no currency in Egypt. People used to buy services using a barter system, and after that, they adopted the coin system. Learning about the Egyptian currency system will help you stay updated about currency exchange rates and will help you plan your investment. The Egyptian currency system went through the following evolution:
The Egyptian currency system dates back to the barter system, in which people exchanged goods and services with each other to fulfill their needs. Communities used to exchange things through precious metals like gold and silver. However, the barter system was convenient for highly precious or least expensive things. It was difficult to manage barter.
The Egyptian financial market was highly stable because gold and silver were common in Egypt. In the era of Alexander the Great, the Egyptians adopted the coinage system influenced by the Romans. Drachma was the first standardized monetary system in Egypt. It was the time when Egyptians started working with silver coins. With these coins, Egyptians started trading in different parts of the Roman.
Egypt’s economic growth also plays a significant role in currency evolution. With the emergence of Islam, the Egyptian economy adopted the concept of dirhams and dinars. These coins were made of gold and silver and had inscriptions from the Quran. These coins symbolized Egypt as an Islamic country, and it became a popular global trading country.
In the 19th century, under the rule of Muhammad Ali Pasha, Egyptians adopted modernization and then he introduced the Egyptian Pound in 1834. During his era, Egypt became a robust economy and replaced the qirsh currency with the pound as the dominant currency. Later in 1898, with Egypt's economic growth the National Bank of Egypt started issuing the banknotes for the first time. During this time, the Egyptian Pound circulated with the gold standard, ensuring its stability.
In the 19th century, the British occupied Egypt and it became linked to the British pound sterling. Due to colonial power Egyptian pound also become strong and prominent. During colonialization Egyptian pound was used widely in trade.
Once Egypt gained independence the government started working for the strengthening of the Egyptian currency. In 1962 for the first time, the government announced the abandonment of the gold standard of the Egyptian pound. The Egyptian pound started to compete with global currencies leading the way to global currency exchange rates.
One of the unique facts of the Egyptian pound is its several pronunciations and writing styles. In Arabic, it is pronounced as "Geneih” which means a gold coin or a pound, whereas in Egyptian, it is pronounced as “Masri” which means Egyptian belonging. The Egyptian Pound is represented by E£ to distinguish it from £.
The Egyptian pound is also known as Guinea in Arabic. Muhammad Ali Pasha introduced the Egyptian pounds in the 19th century, which brought about a huge economic shift in Egypt.
All the Egyptian banknotes are bilingual. English and Arabic are printed on all the notes and coins of Egypt. It shows the religious diversity of Egypt reflecting the Egyptian pound history. The English side of these notes represents the British rules and their impact on Egypt. The English side also represents Christianity, the ancient past, and motifs of pharaohs, pyramids, temples, and statues. However, the Arabic writing shows Islamic cultural values. The Arabic side depicts iconic mosques and Islamic art.
King Tutankhamun is one of the most well-known kings in Egyptian history. He died at the age of 18 and his dead body was found with numerous treasures making him famous. The 1-pound coin of Egypt has a picture of Tutankhamun with his golden mask over his face. It symbolizes the golden iconic era of Egyptians and their fascination with Egypt’s ancient rulers.
Cleopatra is one of the most Egyptian female pharaohs. She was also the last Pharaoh and sister of Alexander the Great. During her rule, the Egyptian financial market gained valuable recognition. Even to date, her features are present in the Egyptian currency. The Tetradrachm coin and 50 piastres coin have a picture of Cleopatra.
One of the most amazing facts about the Egyptian pound is its varying size. The size of a note reflects its worth. The larger the note, the higher it's worth. For instance, the 200-pound note has high denominations that are noticeably larger. In contrast, 5- and 10-pound notes with low denominations are significantly small. The size reflects the significant difference between the Egyptian Pound the USD.
The designs on Egyptian banknotes and coins reflect dual heritage. On coins, the remarkable history of Egypt is engraved, whereas on notes, you will find Islamic heritage and references. The notes have images of Islamic monuments, such as the Mosque of Muhammad Ali and the Al-Azhar Mosque.
Another surprising factor of the Egyptian pound is its security feature. Egyptian banks printed the notes with a watermark on it to ensure its security and integrity of currency. The security features had a global impact on the Egyptian Pound. However, in 1968, the banks started printing notes with metallic threads instead of watermarks. The modern currency of Egypt has opted for advanced security features such as holograms, microprint, and color-shifting ink. These security features enhance the integrity of the currency, encouraging people to send money online to Egypt for investment purposes.
Usually, there is a certain name fixed for a country’s currency, but that's not similar to Egyptian currency. There are several unofficial nicknames for Egyptian currency, such as nekla, derived from nickel. Nekla is used for 2 milliemes. However, ta’rifa for 5 millimeters. A common name for the coin is piastres, which is also called Shele. Different piastres have different names such as Shelen is used for 5 piastres and reyal for 20 piastres. Geneih is a popular nickname among locals which was derived from the British guinea coin. These names also had an impact on Egypt’s economic growth. The local Egyptians call one pound Bulbul or Gondi, which means a nightingale or a soldier.
In the early 20s, the Egyptian pound became valuable and was considered among the strongest currencies of North Africa. It was the time of colonial rule in Egypt when EGP became robust. During that time, EGP was used for international trade. The strength of the pound made Egypt ideal for investment purposes, and countries started trading cotton and agricultural goods with Egypt. However, after the end of British rule, the Egyptian pound suffered from currency devaluation.
Egypt has one of the most stunning and striking currencies, especially the pound coins. These coins have different and unique color patterns with different pictures on them. The one-pound coins have a golden core representing Egypt’s wealth and a silver outer ring symbolizing modernity. On one pound coin, you will also find the golden death mask of Tutankhamun. These coins are not only appealing but also durable. People worldwide love to collect these coins. Other than coins, the bank notes of Egyptian pounds also reflect the vibrant colors of its history and culture.
Egyptian Pound history holds the symbols of many ancient rulers. Egypt’s 5- and 10-proud coins are rarely found due to their low denomination and special designs embarking on historical moments. Due to different themes and designs, people love to collect them, and instead of 5 or 10-pound coins, they use banknotes to preserve the artistic coins.
The Egyptian pound has evolved with time. In recent times it witnessed peak values but also suffered from devaluation. Socioeconomic and political factors have always affected the worth of the Egyptian pound. In the time of British rule, there was a great demand for EGP but after the freedom of Egyptians, they suffered currency devaluation.
However, it is still more worthy and valuable than many currencies of the world. It has a slight difference from the sterling pound as 1 sterling pound is equal to 63 Egyptian pounds. This downfall is due to the recent devaluation in 2016. The following factors affected the value of the Egyptian pound:
Foreign exchange reserves also play a significant role in stabilizing the country's economy. Egypt received almost 6.4 billion U.S. dollars in remittances in 2022-23, which significantly stabilized the currency value and led to Egypt’s economic growth. Egyptian expats worldwide send money online to Egypt to support their families and to invest in different areas. ACE Money Transfer supports expats in sending money to Egypt at affordable prices.
Read More: ACE offers competitive rates on remittances to Egypt.
The early 20th century was a remarkable period of Egyptian gold because it became one of the most stable and valuable currencies. At that time the British Egyptian Pound was pegged to the British Pound Sterling increasing financial stability in Egypt.
In the mid 1900s Egypt started pegging the currency to the USD. This transition was not successful and created vulnerabilities. During this time foreign reserves also suffered a decline disrupting the economy and causing currency devaluation.
The Egyptian pound has suffered devaluation several times. During the time of the shift to USD and the Russian-Ukraine war. Although the pound again strives to stabilize by competing with global market political decisions, the central bank of Egypt plays a significant role in stabilizing the currency.
The current value of the Egyptian pound has suffered a downfall against stable currencies like US Dollar, Euro, and British Pound. The exchange rate has also been affected by inflation in Egypt. Exchange rates have increased, affecting the investment sector in Egypt. However, Egyptian expatriates can enjoy considerable exchange rates while sending remittances. With its timely service delivery, ACE Money Transfer offers favorable exchange rates to expats who want to make a money transfer to Egypt.
The inflation rate directly impacts the Egyptian financial market affecting the value of EGP. However, improved inflation can stabilize the value of currency.
During covid 19, many countries suffered huge losses. During the pandemic, EGP also suffered devaluation against the sterling pound.
The Central Bank of Egypt plays a significant role in stabilizing the currency and maintaining the financial bonds of RGP with global currencies. The bank has initiated many foreign and monetary policies to stabilize the currency during the devaluation of the currency.
The economy of a country plays an influential role in stabilizing the currency. Egypt is one of the largest economies in Africa, known for its agriculture and trading routes. Here are some Egyptian economic facts:
Around 10 to 12% of Egyptian GDP depends upon agriculture and farming. One of the major reasons for farming is the support of the Nile River in fertilizing the agricultural land producing cotton and other important crops.
The Suez Canal in Egypt is a popular sea route or international tradition. Many countries use this route to connect with global countries, which is highly profitable for Egypt.
Tourism due to famous attractions like the Pyramids of Giza and the Valley of the Kings also plays a crucial role in supporting the economy.
Due to the strong economy, Egypt has numerous investment opportunities. Often, Egyptian expatriates living abroad send money to their families and look for ways of investment to increase their assets. Here is how to invest in Egypt and how investing in Egypt will be worth it for you.
Due to geographical advantages, investing in Egypt is a great opportunity for individuals. Moreover, Egypt holds great historical importance, which has made it a center of attention for tourists, increasing the consumer market in Egypt, which can make your investment more profitable. You can invest in Egypt through the following ways:
The history of the Egyptian pound dates back to the time when there was no concept of currency, and people used to rely on a barter system. With the development and in the regimes of Pharaohs, many changes were made to the Egyptian currency. During British rule, the Egyptian pound gained a high value which was then devalued due to significant reasons. Until now, the Egyptian government has taken many initiatives to revive the value of the pound against the sterling pound. The symbolic picture, patterns, and security features of the Egyptian pound make them more unique and worthwhile. Now, the Egyptian pound is still competing to regain its value through investment and remittances.
Read more about the best time for remittance transfer to Egypt.
Egypt is one of the popular countries known for its history and hidden treasures. These treasures have also impacted the worth of the Egyptian pound. However, inflation in Egypt in the times of COVID-19 and wars has affected the value of the Egyptian pound. The history of the Egyptian pound and its evolution holds great importance because of numerous surprising factors. EGP has so many local nicknames in different languages that symbolize ancient history, but it is written as E£. To date, the Pound continues to influence both local and global economies. The identity of the pound is connected to the great history of Egypt.
The Egyptian pound has faced many turns due to Currency devaluation giving it a tough time to maintain international trade. However, the Central Bank of Egypt has always played a critical role in stabilizing the currency. Floating, pegging to different currencies, buying or selling foreign reserves and opening investment opportunities have always worked in reviving the currency. Remittance plays a crucial role in stabilizing the value of EGP. Investing in Egypt is still valuable due to the great importance of EGP.
The value of the Egyptian pound keeps on fluctuating due to varying economic conditions. The value of a currency depends upon foreign reserves, exchange rates, economic growth and inflation. In the 21st century, EGP has faced certain devaluation. Almost 50 EGP makes a single USD.
EGP has been devalued several times, first after the end of British rule in the 19th century. Moreover, in 2016 and again in 2022-2023, due to inflation and a shortage of foreign reserves, it faced a decline.
The Central Bank of Egypt stabilizes the currency by controlling inflation, managing foreign reserves, opening investment opportunities, and through interest rates.
There are numerous investment opportunities in Egypt in different sectors, such as real estate, tourism, energy resources, trading, import, and manufacturing industries. The central bank has eliminated additional taxes on investment to encourage domestic investments.
Expats can invest money online by finding contractors or sharing holders. Nowadays, facilities for online banking and mobile apps have made online investments easier. ACE Money Transfer provides favorable rates to individuals investing in Egypt.
