10 Pounds (Faculty of Law, Cairo University) – Egypt

In 2019, Egypt's currency situation was characterized by a period of relative stability and cautious optimism, a significant shift from the economic turbulence earlier in the decade. This stability was the direct result of a bold reform program initiated in 2016, which included a decisive flotation of the Egyptian pound. That move, supported by a $12 billion IMF loan, saw the currency lose over half its value against the US dollar almost overnight. While initially causing severe inflation and hardship, the devaluation succeeded in eliminating a crippling black market for foreign currency, attracting portfolio investment, and rebuilding the nation's foreign reserves.

The key indicator of this newfound stability was the exchange rate, which held remarkably steady throughout 2019, trading within a narrow band around 16-17.5 Egyptian pounds to the US dollar. This was a stark contrast to the volatile pre-float era. The Central Bank of Egypt (CBE) maintained this stability through high interest rates—which it began to cautiously cut in the latter half of the year—and by accumulating foreign reserves, which climbed to over $45 billion. This predictable exchange rate environment was crucial for restoring business confidence and encouraging foreign direct investment into non-oil sectors.

However, this stability came at a persistent social cost. The high inflation triggered by the 2016 devaluation, though slowing, remained in double digits throughout 2019, continuing to erode the purchasing power of ordinary Egyptians. While macroeconomic indicators were improving, the benefits were slow to trickle down, and the government continued to face pressure to manage subsidy reforms and protect vulnerable households. Thus, 2019 represented a year of consolidated macroeconomic gains for the Egyptian pound, but one where the broader population was still grappling with the lingering effects of the necessary, yet painful, economic correction.