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What Currency to Use in Egypt: A Traveler’s Definitive Guide

The short answer is simple: the official currency of Egypt is the Egyptian Pound (EGP), often denoted as LE or £E. While some establishments, particularly those catering to tourists, may accept foreign currencies like US dollars (USD) or Euros (EUR), relying solely on them is a risky gamble.

Navigating the Egyptian Monetary Landscape

Egypt, a land of pharaohs and vibrant bazaars, requires a bit of savvy when it comes to money matters. While credit and debit cards are becoming increasingly accepted, especially in larger hotels and restaurants in tourist areas, cash is king in Egypt. Understanding the nuances of the Egyptian Pound and how to best manage your finances will greatly enhance your travel experience.

Understanding the Egyptian Pound (EGP)

The Egyptian Pound is divided into 100 piastres (PT), although piastre coins are becoming increasingly rare. Banknotes are more commonly used, and they come in denominations of 1, 10, 20, 50, 100, and 200 pounds. Keep an eye out for counterfeits, especially with larger denominations. Familiarize yourself with the feel and security features of genuine banknotes.

Why the Egyptian Pound is Essential

While the lure of using US dollars or Euros might seem convenient, there are several compelling reasons to prioritize the Egyptian Pound:

Better Exchange Rates: You will almost always get a more favorable exchange rate when paying in the local currency. Establishments that accept foreign currencies often inflate their prices to compensate for the exchange rate risk and potential transaction fees.
Wider Acceptance: From local markets and street food vendors to smaller shops and taxis, the Egyptian Pound is universally accepted. Trying to pay for a felucca ride on the Nile with US dollars will likely be met with confusion or a significantly higher price.
Cultural Sensitivity: Using the local currency shows respect for the local culture and economy. It supports local businesses and helps ensure fair prices for everyone.
Avoiding Scams: Some unscrupulous individuals might try to take advantage of tourists unfamiliar with the local currency by giving unfavorable exchange rates or shortchanging them. Paying in Egyptian Pounds minimizes this risk.

Where to Exchange Your Currency

Exchanging your currency for Egyptian Pounds is relatively easy, but it requires careful consideration:

Banks: Banks generally offer the most competitive exchange rates, but they may have limited operating hours and require you to present your passport.
Official Exchange Bureaus: Located in airports, major cities, and tourist areas, these bureaus typically offer better rates than hotels. Look for reputable bureaus with clear signage and transparent fees.
ATMs: ATMs are a convenient option for withdrawing Egyptian Pounds directly. Ensure your bank card is compatible with the ATM network (e.g., Visa, Mastercard) and be aware of potential transaction fees from both your bank and the ATM provider. Never withdraw cash from ATMs with people hanging around them offering help.
Hotels: Hotels often offer currency exchange services, but their rates are usually less favorable than banks or exchange bureaus. Use this as a last resort or for small amounts.
Avoid Street Money Changers: While tempting, these individuals often offer counterfeit currency or scam unsuspecting tourists. It’s best to stick to authorized exchange points.

Tips for Managing Your Money in Egypt

Exchange Only What You Need: Avoid exchanging large sums of money at once. Exchange smaller amounts as needed to minimize the risk of theft or loss.
Keep Small Denominations Handy: Having smaller denominations (1, 5, 10, 20 EGP) is essential for tipping, bargaining, and paying for small items.
Bargain Respectfully: Bargaining is a common practice in Egyptian markets, but always do so respectfully and with a smile.
Be Aware of Your Surroundings: Be mindful of your belongings and avoid displaying large amounts of cash in public.
Notify Your Bank: Inform your bank of your travel dates to avoid having your card blocked for suspicious activity.
Keep a Record of Your Transactions: Keep receipts for all your currency exchange transactions.

Frequently Asked Questions (FAQs)

1. Can I use US dollars (USD) directly in Egypt?

While some tourist-oriented businesses may accept USD, it’s not widely accepted. You’ll get better rates using Egyptian Pounds.

2. Are credit cards widely accepted in Egypt?

Credit cards are accepted in larger hotels, restaurants, and shops in tourist areas. However, smaller establishments and local markets typically prefer cash. Always ask if a place accepts credit cards before making a purchase.

3. What’s the best way to get Egyptian Pounds upon arrival?

Using an ATM at the airport is usually a convenient and cost-effective option. Alternatively, you can exchange currency at an official exchange bureau in the airport.

4. How much should I tip in Egypt?

Tipping, known as “baksheesh,” is customary in Egypt. Tip waiters (10-15%), taxi drivers (round up the fare), hotel staff (porters, cleaners), and tour guides.

5. Are there ATMs in smaller towns and villages?

ATMs are more common in larger cities and tourist areas. Availability may be limited in smaller towns and villages, so plan accordingly.

6. What are the current exchange rates between USD/EUR and EGP?

Exchange rates fluctuate daily. Check reputable online sources or ask your bank or exchange bureau for the latest rates. Keep in mind that the rates you see online may differ slightly from the actual rates offered at exchange points.

7. Is it safe to use ATMs in Egypt?

Generally, ATMs are safe to use, but be cautious of your surroundings and protect your PIN. Use ATMs located in well-lit and secure areas. Avoid using ATMs with suspicious-looking individuals nearby.

8. Can I use traveler’s checks in Egypt?

Traveler’s checks are becoming increasingly difficult to use and are not recommended in Egypt.

9. What should I do if my credit card is lost or stolen in Egypt?

Report the loss or theft to your bank immediately and request a replacement card. Also, consider reporting the incident to the local police.

10. What are the common scams to watch out for in Egypt?

Be wary of overcharging, counterfeit currency, unsolicited assistance (followed by a demand for payment), and inflated prices for souvenirs. Always negotiate prices before agreeing to a service or purchase.

11. Is it possible to pay with a debit card everywhere?

While debit card usage is increasing, it’s not as widespread as credit card acceptance, especially outside of major cities and tourist areas. Always have cash on hand.

12. Can I re-exchange my Egyptian Pounds back to my original currency when leaving Egypt?

Yes, you can re-exchange your Egyptian Pounds at the airport or at exchange bureaus before departing. However, be aware that you may not get the same exchange rate you originally received. It’s best to exchange only what you need to avoid significant losses.

By understanding the currency landscape and following these tips, you can navigate the financial aspects of your Egyptian adventure with confidence, allowing you to fully immerse yourself in the wonders of this ancient land.