Why Can’t I Buy Egyptian Pounds in the UK?
Understand why Egyptian Pounds are restricted outside Egypt and learn practical ways to manage your money effectively for travel within the country.
Travelers planning a trip to Egypt often wonder about the availability of Egyptian Pounds (EGP) in their home country. Many currencies with limited convertibility are not readily available for exchange in foreign markets.
Understanding the Restrictions on Egyptian Pounds
The difficulty in purchasing Egyptian Pounds outside Egypt stems from the nation’s specific foreign exchange regulations. Egypt implements currency controls, policies designed to manage the flow of foreign currency. These regulations are outlined in laws like Law No. 88/2003 and Law No. 194 of 2020.
The Egyptian Pound is a non-freely convertible currency, meaning its circulation and exchange are restricted to within Egypt’s borders. This prevents it from being widely traded on international markets. The government uses these controls to preserve economic stability and prevent illegal trading activities that could undermine the official exchange rate.
Engaging in foreign currency transactions outside of licensed banks or authorized exchange bureaus is illegal in Egypt. Violations can lead to severe penalties, including imprisonment and substantial fines. These measures limit the demand and supply of EGP in foreign countries, making it impractical for financial institutions abroad to stock or offer the currency. The limited availability of EGP outside Egypt is a direct result of Egypt’s own currency regulations, not a prohibition by foreign institutions.
Strategies for Obtaining Egyptian Pounds in Egypt
Once in Egypt, travelers have several reliable methods for obtaining Egyptian Pounds. Automated Teller Machines (ATMs) are widely available in major cities and tourist centers, providing a convenient way to withdraw local currency. These machines accept Visa and Mastercard debit or credit cards. When using an ATM, select the option to be charged in Egyptian Pounds to avoid unfavorable dynamic currency conversion (DCC) rates.
Many bank-operated ATMs do not impose a direct fee for withdrawals, but some non-bank or hotel-based ATMs might charge a transaction fee, often around 200 EGP. Individual banks may have their own foreign transaction fees, so check with your home bank before travel. Withdrawal limits for foreign cards at Egyptian ATMs range from 4,000 to 6,000 EGP per transaction.
Another option is to exchange foreign cash at official exchange bureaus or banks within Egypt. These establishments are prevalent in tourist areas and cities, offering exchange rates comparable to banks. A physical passport is required for the transaction. While airport exchange services are available for immediate needs, they often offer less favorable rates than bureaus or banks in the city. Exchange smaller amounts as needed, as exchange rates can fluctuate.
Financial Considerations for Travelers in Egypt
Navigating finances in Egypt involves a blend of cash and card usage, as it remains largely a cash-based society. Major hotels, upscale restaurants, and larger shops in tourist areas accept credit and debit cards. However, cash is often preferred and necessary for smaller purchases, local markets, taxis, and tipping.
When making card payments, choose to be charged in Egyptian Pounds rather than your home currency. This avoids less favorable exchange rates and additional dynamic currency conversion fees. Carrying smaller denomination Egyptian Pound bills is beneficial for everyday transactions, particularly with street vendors or for gratuities.
For security, do not carry large sums of cash. Make smaller, more frequent withdrawals from ATMs as needed to mitigate risk. Before traveling, inform your bank about your trip dates and destinations to prevent your cards from being flagged for suspicious activity. Bringing multiple debit or credit cards, ideally from different networks, provides a valuable backup in case one card is lost, stolen, or not accepted.