Last October, we entered Egypt by ferry from Jordan and started our adventure in a quaint coastal town, Dahab (which translates to gold in Arabic). It is famous for its Red Sea activities especially freediving as it's home to the infamous Blue Hole (a sinkhole 130m deep). Locals consider it the perfect getaway from the hustle and bustle of Cairo, and foreigners enjoy the nomadic life it provides.
We quickly learned about the USD exchange rate disparity at the bank versus the street. (1 USD = ~31 EGP at the bank but 37 EGP on the street). This disparity steadily increased during our two-month stay, 41 EGP ➝ 43 EGP ➝ 48 EGP. Economic issues causing this included capital controls, a USD shortage, inflation, and more. This street rate reached as high as 70 EGP in 2024.
As an Egyptian, this meant walking into a bank and not having access to USD or only a limited amount, your credit card could be restricted to foreign usage and ATMs had low limits. During our stay, it was normal to encounter ATMs that were out of cash resulting in long lineups at other locations, a common sight in many cities.
Here are some anecdotes from the locals we met:
-A chef and small restaurant owner has dealt with produce prices increasing threefold since opening her restaurant six years ago. She now has the option to increase her prices, reduce her food quality, or go out of business. -A scuba-diving shop owner who owes his suppliers (mostly European) in euros as his local currency freefalls. He prefers being paid in US dollars or euros and is nearing the stage of applying a premium when a customer pays in Egyptian pounds. -An Airbnb host who stores his value in cars because the Corolla he purchased a year ago is worth 35% more now.
In a country plagued with economic issues, bitcoin is a perfect fit, but unfortunately, it is illegal in Egypt. We had to be fairly hush-hush when talking about bitcoin with merchants. The majority of them were open to the idea of accepting bitcoin but feared the repercussions of doing so. That said, we paid for a cold plunge workshop, a custom shirt, and a stay at an Airbnb with bitcoin.
We left Egypt not knowing what economic outlook awaits for a country with such a rich history. In March 2024, an additional $5 billion loan was taken from the IMF (expanded to $8 billion), and the interest rates rose by 600 basis points! This led the EGP to be devalued by ~35% leading to an exchange rate of 1 USD = 48 EGP at the bank and reaching parity with the reality on the streets. Since then the foreign currency restrictions and ATM withdrawal limits have been loosened easing some pressure off the locals. Time will tell how this all plays out.
Ethiopia is up next.

This situation of Greece while it's so beautiful otherwise. It's one of my dream destination but Bitcoin is illegal there is just unacceptable to me. I'm gonna choose any other nation over it now.
reply
Bitcoin is not illegal in Greece
reply
189 sats \ 1 reply \ @flat24 18 Sep
Thank you for sharing these valuable anecdotes to learn more about other places and the economic conflicts in each area. I would like to comment that the IMF never lends money to be paid back, their thing is to take over the nation and have a slave in debt forever. And finally, it is not surprising that they prohibit or want to deny ordinary people access to Bitcoin. Obviously, one more example that Bitcoin is the only real tool that ordinary people have to be able to break the hamster wheel 🛞 in which they keep us tied and asleep, always running after papers that are worthless. Bitcoin 🍊 is Freedom 💪🤠⚡🍊
reply
Agreed with all your thoughts, Ethiopia too had a similar issue. It's a worldwide problem, countries in unfortunate financial situations are taken advantage of by these world banks and massive institutions. The silver lining is having access to monetary technology that doesn't discriminate. Appreciate you sharing your thoughts.
reply
105 sats \ 1 reply \ @gmd 17 Sep
Sad... how are people supposed to live like this. Your money is so useless you're back to bartering systems.
reply
People are having a difficult time and it's only going to get worse for the low socio-economic population of the world.
reply
It's going to happen everywhere eventually. Thank goodness with have Bitcoin. 🙏💚🌄
reply
I would say that it is happening with fiat everywhere, its just that the rate it is happening varies.
reply
In the us we have the world reserve currency, for now.... so it's taking longer.
reply
Agreed that it's a global issue.They're all on the decline it's a matter of how quickly are they losing value.
reply
I agree. Fiat is a worldwide issue.
reply
Inflation and Fiat money is a cancer that haunts and continues to damage hundreds of economies worldwide.. they limit you from withdrawing or obtaining your own money.. they restrict the use of the card.. in short, economic tyranny and dictatorship!!! And this example is presented in just 2 months, which is a fairly short period of time!! And the owners of that restaurant will most likely close..!! And the most regrettable thing is that Bitcoin is prohibited in Egypt.. which would undoubtedly be a great solution to several of their problems..
reply
Egypt, like so many other nations is a military and monetary tribute state to the US Empire.
reply
You are absolutely right, my dear friend, as are Germany, Japan, Italy, to mention other examples.
reply
Bitcoin was indeed perfect but it was so unfortunate that couldn't be spoken about freely with everyone they needed it the most.
reply
63 sats \ 1 reply \ @BTCLNAT 18 Sep
"We quickly learned about the USD exchange rate disparity at the bank versus the street. (1 USD = ~31 EGP at the bank but 37 EGP on the street). This disparity steadily increased during our two-month stay, 41 EGP ➝ 43 EGP ➝ 48 EGP. Economic issues causing this included capital controls, a USD shortage, inflation, and more. This street rate reached as high as 70 EGP in 2024. As an Egyptian, this meant walking into a bank and not having access to USD or only a limited amount, your credit card could be restricted to foreign usage and ATMs had low limits. During our stay, it was normal to encounter ATMs that were out of cash resulting in long lineups at other locations, a common sight in many cities."
Are you sure you were in Egypt? Wouldn't you be in Cuba?
That is the behavior in Cuba. Of course, with dollar accounts here, it can take months for you to be able to withdraw "your money" from the bank.
reply
We could probably insert another country and its currency from an entire list and this analogy will likely all be true given the rate at which money is declining all over the world.
reply
Very similar of what happened in Venezuela when capital controls where applied . It amazed me how the humans can repeat same mistakes over and over again
reply
yeah. .The dollar’s dominance can exacerbate inflation in Egypt. As the cost of imports rises, so do prices for consumers, leading to a decreased purchasing power for the Egyptian pound.
reply
Why is there USD shortage in Egypt?
Lonely planet!
reply
21 sats \ 0 replies \ @drlh 18 Sep
Even with moneys from selling a town to UAE they still adressed to IMF? What a hole in the bank they have?
reply
It's time when people realise the reality of fiat and join Bitcoin revolution and be your own banker.
reply
Thanks for the great write up! It's eventually gonna be the situation everywhere. The USD gonna be the last or may be INR.
reply
Time will tell how this plays out in which currencies are left
reply
It turns out that the most screwed countries are always those that prohibit and reject Bitcoin.
reply
It sucks because if they accept, they could turn around the predicament that they're in if implemented correctly.
reply
You are traveling to Ethiopia? I have been there many times. Would love to chat more with you on the topic of Ethiopia.
reply
The next article is about Ethiopia and yes would love to chat about it!
reply
Love these first person accounts. Keep them coming!
reply
Appreciate the feedback and will try to do my best to include them.
reply
No kidding this is a top notch post!!
reply
0 sats \ 0 replies \ @jan 20 Sep
My parents were there when they did the big $8B IMF deal in 2023 and their pound devalued dramatically overnight (went from 30 to 50 pounds per dollar literally overnight).
Scary for people to wake up and their savings be that dramatically impacted.
Also, how do you function a business with interest rates at 25-30%?
Wild
reply