# Economic expert: Dollar exchange-rate fluctuations are normal; reliance on hot money constrains monetary policy

> An Egyptian economist said dollar-pound fluctuations are normal under a flexible exchange-rate policy, and that the dollar reaching 54–55 pounds was not exceptional. He attributed pressure on the pound partly to foreign investors moving funds from emerging markets into US bonds as US interest rates rise, and said reliance on those inflows can keep Egyptian interest rates high.

- Date: 2026-11-09 · published 2026-11-10T00:13:50.538Z
- Category: macro · region Egypt · magnitude low
- Page: https://feedsoft.ai/events/90408-economic-expert-dollar-exchange-rate-fluctuations-are-normal-reliance-on-hot
- Commodities: [Egyptian Pound (EGP per USD)](https://feedsoft.ai/c/USDEGP.md)

## Why it matters

Capital outflows can increase demand for dollars and weaken the Egyptian pound, raising import costs. Persistent reliance on foreign portfolio flows may also keep borrowing costs elevated for businesses.

## Sources

- egyin.com: https://www.egyin.com/article/159440/%D8%AE%D8%A8%D9%8A%D8%B1-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A-%D8%AA%D8%B0%D8%A8%D8%B0%D8%A8-%D8%B3%D8%B9%D8%B1-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D8%A3%D9%85%D8%B1-%D8%B7%D8%A8%D9%8A%D8%B9%D9%8A

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.