25 Piastres – Egypt

Following the 1952 revolution and the rise of Gamal Abdel Nasser, Egypt's currency situation in 1957 was defined by the aftershocks of the Suez Crisis the previous year. In retaliation for the nationalization of the Suez Canal, Britain, France, and Israel invaded in October 1956. A critical financial consequence was the freezing of Egypt's sterling balances held in London, which constituted a major portion of the nation's foreign reserves. This aggressive move aimed to cripple the Egyptian economy but instead solidified a decisive break from Western financial dominance.

Domestically, the government responded by accelerating its nationalist and socialist economic policies. The Egyptian pound, which had been pegged to sterling, was formally devalued, and a complex system of multiple exchange rates was implemented to control scarce foreign currency. This administrative framework prioritized essential imports for industrialization and development projects, while restricting access for luxury goods. Furthermore, 1957 saw the final expulsion of foreign banks and their replacement with fully nationalized Egyptian institutions, cementing state control over all financial activity.

Internationally, Egypt sought new economic alliances to circumvent Western isolation. Trade and aid agreements were forged with the Soviet Union and Eastern Bloc countries, creating alternative markets for Egyptian cotton and sources for machinery and arms. This realignment, coupled with the successful political victory in the Suez Crisis, allowed Egypt to navigate the immediate currency crisis. However, the system of rigid controls and inward-looking policies established in this period would later contribute to long-term economic distortions and foreign exchange shortages.