Central Bank of Egypt
Egypt’s central bank and monetary authority, responsible for monetary policy, currency issuance, banking supervision, reserves, and the national payments system.
Last updated November 4, 2026
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Overview
The Central Bank of Egypt (CBE) is Egypt’s central bank and principal monetary authority. It formulates and implements the country’s banking, monetary, and credit policies; issues Egyptian banknotes; manages gold and foreign-exchange reserves; oversees the foreign-exchange market; supervises banks and the national payments system; and administers aspects of Egypt’s public and private external debt. Its work affects the Egyptian pound, domestic interest rates, banking-sector liquidity, inflation conditions, reserve adequacy, and the availability of foreign currency for trade and investment. The institution’s historical roots lie in the National Bank of Egypt, established as a commercial joint-stock company in 1898 by British financier Sir Ernest Cassel and Egyptian partners. During the post-1952 revolutionary period, Egypt pursued the Egyptianization and nationalization of strategic economic institutions. The government concluded that a commercial bank should not retain the country’s central-bank powers. Law No. 250 of July 1960 nationalized the relevant central-banking functions and separated them from the National Bank of Egypt’s commercial activities. The CBE was established in January 1961 as the institution with sole authority to issue banknotes, formulate monetary policy, and supervise the domestic banking registry. The CBE expanded its operational infrastructure during the 1960s. In 1967 it established a banknote-printing house in Giza, reducing dependence on overseas printing facilities. The institution later became a central actor in Egypt’s economic liberalization and exchange-rate management. Initial measures to move toward a floating Egyptian pound were introduced in 2003. Law No. 88 of 2003 consolidated the legal framework for banking and strengthened the CBE’s institutional basis, including a formal emphasis on maintaining price stability. The bank also played a crisis-management role during the 2011 Egyptian Revolution. Banks closed for approximately a week amid widespread demonstrations and economic disruption, with further intermittent closures during February. When banking operations resumed on February 6, the CBE imposed daily withdrawal limits to reduce the risk of a bank run. The limits were reported at EGP 50,000 and US$10,000 per person per day. The period also brought substantial capital outflows from Egyptian Treasury bills and heightened pressure on foreign-exchange reserves and financial-market confidence. In November 2016, during the governorship of Tarek Hassan Amer, the CBE adopted a full float of the Egyptian pound. The measure was intended to address foreign-exchange shortages, restore reserve balance, and allow the exchange rate to adjust more directly to market conditions. The float formed part of a wider macroeconomic stabilization program and was followed by major changes in the value of the pound, interest rates, and inflation dynamics. The legal framework was further modernized by Law No. 194 of 2020. The law replaced earlier banking legislation and broadened the CBE’s supervisory reach to include digital banking, financial-technology activities, and payment systems. In March 2022, the bank launched InstaPay, an instant-payment system designed to support immediate electronic transfers within Egypt and extend the country’s digital-payments infrastructure. During the 2023–2024 foreign-exchange and inflation crisis, the CBE continued to use interest rates and exchange-rate policy to respond to macroeconomic pressure. On March 6, 2024, following an exceptional meeting, it raised interest rates by approximately 600 basis points and allowed the Egyptian pound’s exchange rate to be determined through market mechanisms. The decision represented the first major reduction in the pound’s exchange rate against the US dollar in more than fourteen months and was presented as part of an effort to target inflation and improve foreign-exchange-market flexibility. The CBE remains an active state institution whose responsibilities span monetary stability, banking regulation, currency management, payments modernization, and financial-system resilience.
History
The institutional origins of Egypt’s central banking system are connected to the National Bank of Egypt, founded on June 25, 1898, as a commercial joint-stock company by British financier Sir Ernest Cassel and local partners. Although the National Bank acquired important monetary functions over time, its commercial character became increasingly incompatible with the post-1952 Egyptian state’s preference for national control over strategic financial institutions. Following the Egyptian Revolution of 1952, the government pursued a broad program of Egyptianization and nationalization. In July 1960, Law No. 250 nationalized the National Bank of Egypt and separated its central-banking responsibilities from its commercial operations. The Central Bank of Egypt was established in January 1961 and received exclusive authority to issue banknotes, formulate monetary policy, and supervise the domestic banking registry. This separation created a dedicated public authority for monetary management and banking oversight. In 1967, the CBE created its own Banknote Printing House in Giza. The facility reduced reliance on foreign printing companies and strengthened Egypt’s control over the production of its currency. The bank subsequently became responsible for a broader range of reserve, foreign-exchange, and banking-system functions as Egypt’s economy evolved. Egypt began taking measures toward a more flexible exchange-rate regime in 2003. Law No. 88 of 2003 unified the banking-law framework and reinforced the CBE’s role, including its responsibility for monetary policy and price stability. The law provided an updated basis for the supervision of banks and the management of the monetary system. The 2011 Revolution presented the CBE with an acute financial-stability challenge. Protests and economic paralysis caused banks to close for roughly a week, followed by intermittent disruptions. When banks reopened, the CBE introduced limits on daily withdrawals in Egyptian pounds and foreign currency to prevent panic withdrawals and protect banking liquidity. The crisis also generated capital outflows from Egyptian Treasury bills and intensified pressure on the country’s reserves and exchange-rate conditions. A major turning point came in November 2016, when the CBE, under Governor Tarek Hassan Amer, moved to a full float of the Egyptian pound. The reform sought to eliminate persistent foreign-exchange distortions, improve reserve conditions, and let market forces play a larger role in determining the currency’s value. The decision had wide consequences for inflation, interest rates, imports, public finances, and household purchasing power. Law No. 194 of 2020 replaced older banking legislation and modernized the regulatory perimeter. Among other changes, it addressed digital banking, fintech activities, and payment systems, reflecting the increasing importance of electronic financial services. In March 2022, the CBE introduced InstaPay, an instant-payment platform intended to make domestic electronic transfers faster and broaden the use of digital payments. During the 2023–2024 financial and foreign-exchange crisis, the CBE again used monetary and exchange-rate instruments to address inflation and currency-market pressures. On March 6, 2024, it raised interest rates by about 600 basis points and announced that the exchange rate would be determined through market mechanisms. The decision followed more than fourteen months without a comparable exchange-rate reduction against the US dollar and represented another significant adjustment in Egypt’s monetary-management framework. The CBE continues to combine conventional central-bank functions with banking supervision, payment-system development, reserve management, currency issuance, and financial-stability responsibilities.
- 2024
Interest-rate and exchange-rate adjustment
[1]The CBE raised interest rates by approximately 600 basis points and stated that the pound would be determined through market mechanisms.
- 2022
InstaPay is launched
[1]The CBE launched an instant-payment system to support rapid electronic transfers and the expansion of digital payments in Egypt.
- 2020
New banking law expands regulatory scope
[1]Law No. 194 of 2020 modernized banking regulation and extended the framework to digital banking, fintech, and payment systems.
- 2016
Egyptian pound is fully floated
[1]The CBE adopted a full float of the Egyptian pound in November as part of a broader effort to stabilize reserves and address foreign-exchange imbalances.
- 2011
CBE manages banking disruption during the revolution
[1]After bank closures during the Egyptian Revolution, the CBE imposed daily withdrawal limits when branches reopened to protect liquidity and reduce run risk.
- 2003
Egypt begins moving toward a floating pound
[1]Initial measures were introduced to make the Egyptian pound’s exchange rate more flexible.
- 2003
Unified banking law strengthens the CBE framework
[1]Law No. 88 of 2003 consolidated banking regulation and formalized the CBE’s mandate relating to monetary policy and price stability.
- 1967
Banknote Printing House opens in Giza
[1]The CBE established a domestic banknote-printing facility to reduce dependence on foreign printing houses.
- 1961
Central Bank of Egypt is established
[1]The CBE began operating as the institution with exclusive authority to issue banknotes, formulate monetary policy, and supervise the domestic banking registry.
- 1960
Law No. 250 separates central-banking powers
[1]The nationalization framework separated central-banking authority from the commercial activities of the National Bank of Egypt.
Products and positioning
Egypt’s statutory central bank and national monetary authority
Currency issuance · 1961
Egyptian pound banknotes
The CBE has the exclusive authority to issue Egypt’s banknotes. Its currency responsibilities include supporting the integrity, availability, and production of the national circulating currency. In 1967, the bank established a banknote-printing house in Giza, helping Egypt reduce its reliance on overseas printing facilities.
Central banking · 1961
Monetary-policy operations
The CBE formulates and implements Egypt’s monetary policy and credit policy. Its policy tools and decisions influence interest rates, liquidity, inflation conditions, reserve management, and the exchange-rate environment. Maintaining price stability is a central element of the institution’s statutory and operational role.
Financial regulation · 1961
Banking supervision
The CBE regulates Egypt’s banks and banking system and supervises the domestic banking registry. Its regulatory responsibilities cover the safety and functioning of financial institutions and have expanded over time to address digital banking, fintech, and payment-system activities.
Payments · 2022
InstaPay
InstaPay is an instant-payment system launched by the CBE in March 2022. It forms part of Egypt’s national payments infrastructure and is intended to facilitate faster electronic transfers and support wider adoption of digital financial services.
Reserve management · 1961
Foreign-exchange and reserve management
The CBE manages Egypt’s gold and foreign-exchange reserves and regulates the country’s participation in the foreign-exchange market. These functions become especially important during periods of currency pressure, reserve depletion, import constraints, and exchange-rate reform.
Brand decisions
2024
Market-based exchange-rate adjustment and rate increaseStrategyBackground
Egypt was experiencing severe inflation and foreign-exchange pressure during the 2023–2024 financial crisis.
Action taken
On March 6, 2024, the CBE raised interest rates by approximately 600 basis points and stated that the Egyptian pound would be determined according to market mechanisms.
Aftermath
The decision represented a major exchange-rate adjustment and was presented as part of the CBE’s effort to target inflation and improve foreign-exchange-market flexibility.
Interest-rate increase. Approximately 600 basis points higher (March 6, 2024)
2022
Launch of InstaPayProduct launchBackground
The growth of electronic finance and the need for faster domestic transfers increased the importance of modern national payment infrastructure.
Action taken
The CBE launched InstaPay in March 2022 as an instant-payment system for Egypt.
Aftermath
The launch expanded the country’s digital-payments infrastructure and placed instant electronic transfers within the CBE’s modernization agenda.
2016
Full float of the Egyptian poundStrategyBackground
Egypt faced foreign-exchange shortages and pressure on its reserves, while the existing exchange-rate framework produced significant market distortions.
Action taken
The CBE moved to a full float of the Egyptian pound in November 2016, allowing market conditions to play a substantially greater role in determining the currency’s value.
Aftermath
The measure became a central part of Egypt’s macroeconomic stabilization program and was followed by major changes in the pound’s value, inflation, interest rates, and import costs.
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