2½ Milliemes – Egypt

In 1933, Egypt's currency situation was defined by its adherence to the Gold Exchange Standard and its close economic ties to Britain. The Egyptian pound (EE) was pegged to sterling, which itself was pegged to gold, creating a stable but externally dependent monetary system. This arrangement facilitated trade and investment, particularly with the British Empire, but also meant that Egypt's monetary policy was largely dictated by the Bank of England and the economic conditions in London, limiting Cairo's autonomous control over its own economy.

The stability of this system faced a significant test in 1931 when Britain abandoned the gold standard, causing sterling to depreciate. Egypt made the pivotal decision to follow sterling off gold, maintaining the peg. This choice, while protecting the vital cotton export sector by keeping Egyptian goods competitively priced in key markets, also imported the inflationary pressures of a devalued currency. The decision underscored Egypt's vulnerable position within the sterling bloc, prioritizing trade relationships over independent monetary management during the global turbulence of the Great Depression.

Consequently, the currency landscape in 1933 was one of managed dependency. The Egyptian pound's value was stable against sterling but fluctuated against gold-backed currencies like the US dollar. The economy remained heavily oriented around cotton exports, and the banking sector was dominated by foreign institutions. While this system provided a measure of stability during a period of global financial chaos, it highlighted Egypt's colonial-era economic structures and the constraints on its national financial sovereignty, setting the stage for future debates over economic independence.