Best currency for Egyptians to save in: USD or EGP?

Given Egypt’s economic situation over the past few years and the volatility of the Egyptian pound (EGP), it is understandable why you might be considering saving in other currencies, especially USD. After all, saving money in the right currency is essential to avoid losing value. As the EGP continues to face pressure and risks further depreciation, saving in USD seems to be the safer option. However, this decision isn't easy to make when you factor in the relative progress the economy has made in recent times, the high interest rates on EGP savings, the cost of USD conversions, and the restricted access to USD.

This article explores the best currency for Egyptians to save in, comparing the benefits and drawbacks of USD and EGP, and the legal constraints on holding foreign currencies.

Also read: Freelance platforms with high payout rates in Egypt

Saving in EGP

Egypt’s economic hitches stem from its reliance on imports, foreign currency shortages, and external shocks. The Egyptian pound (EGP) has undergone several rounds of devaluation since 2016, particularly amid foreign currency shortages and economic pressures. The official exchange rate has lagged the black-market rate, making the EGP volatile and unpredictable. However, there are still some benefits to saving in EGP.

Advantages

• High interest rates:  The Central Bank of Egypt (CBE) has maintained high interest rates to combat inflation. In early 2025, policy rates reached 27.75%, making the EGP very attractive for short-term savings. This interest rate could offset inflation and exchange rate depreciation. EGP savings certificates and treasury bills also offer reasonable rates despite inflation.
• Convenient for daily expenses: EGP is the local currency for daily life and domestic transactions in Egypt. This makes saving in EGP suitable for short-term needs, as you can quickly have access to liquidity.
• Ease of access: Widely available through local banks like Banque Misr or NBE, with options for variable or fixed returns. Ideal for everyday expenses in Egypt.
• Government backing: No legal restrictions or documentation issues.

Disadvantages:

• Inflation affects its value: With 12.5% inflation and annual devaluations, savings in EGP lose value over time. Experts advise against holding pure EGP cash for these reasons.
• Economic risks: Potential for sudden policy changes or higher inflation can affect the returns on savings.

Also read: Where to buy Egyptian pound as a non-citizen

Saving in USD

The US dollar (USD) remains the world’s most stable and widely used reserve currency, used in trade, investment, and global savings. This stability makes it naturally more appealing during times of economic uncertainty.

Advantages

• Value preservation: USD offers leverage against EGP devaluation because it gains as the EGP weakens. This protects the USD value, especially if you have international expenses such as imports, travel, and remittances.
• Stability: USD is less affected by Egypt's local inflation.
• Legal options available: Banks offer USD savings accounts and certificates that allow you to save in USD and avoid the risks of the black market. Expats and global businesses with foreign income often opt for this.
• Diversification: Saving in USD helps you avoid putting all your eggs in one basket by reducing your exposure to local economic risks.

Disadvantages:

• Lower interest rates: USD savings offer a higher yield than EGP savings.
• Possibility of scarcity: There can be shortages in USD, limiting availability when you need it or requiring bank accounts and documentation.
• Regulatory risks: Egypt has strict rules on foreign currency use that can affect savings in USD.
• Conversion fees: Currency conversion fees apply when converting back to EGP, and there may be a loss if the EGP strengthens.

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What should you consider before choosing what to save in

Before opting for either USD or EGP, here are some things you should consider

• Time horizon: For the short term, EGP might be better because the interest rate can offset local inflation. In the long term, USD provides better protection against devaluation.
• Spending needs: If expenses are in EGP (e.g., local bills), savings in EGP might suffice. For cross-border use, saving in USD is preferable.
• Diversification: Diversifying your savings is usually better than saving entirely in one currency.
• Legal compliance: Manage your finances with licensed, regulated banks and payment platforms.

Also read: Cheapest way to send money from Egypt to the USA

Managing your finances with Grey

Saving in EGP only is risky due to the ongoing inflation and currency devaluation. Saving in USD only is also risky because of limited access to USD. Your best bet? Saving in both currencies and managing your finances with a payment solution that allows you to hold USD and EGP on the same platform. Grey offers free USD accounts, allowing you to manage USD transactions efficiently and convert to EGP at low fees and competitive exchange rates.

Sign up on Grey today and manage your finances efficiently.

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