Around the World: Egypt Prepares New Denomination Coin
Coin shortages, rising metal values, and a proposed new denomination are reshaping Egypt’s circulating coinage.
Egypt has a circulating coin problem, and it looks to resolve it by minting more coins.
On April 7, the Egyptian government announced it is preparing to introduce a new E£2 (2-pound coin). The announcement was made during a meeting of the Egyptian Senate’s Economic Committee. The committee was discussing a proposal submitted by MP Bassem Kamel regarding the lack of small change in circulation and its negative impact on citizens’ daily transactions. Kamel is the secretary-general of the Egyptian Social Democratic Party and a member of the Egyptian Senate.
Kamel had been addressing the problem of the difference between the nominal value of circulating coins and their scrap value. Kamel said the problem is that many coins are being accumulated and melted for their metal values through unlicensed foundries. According to the parliamentary member, melting current coins is an infringement on the state’s monetary sovereignty. The Central Bank of Egypt’s Law No.194 of 2020 forbids the melting of current coinage.
CBE Law No. 194 promotes cashless payments and digital transformation. It also requires licensing of all electronic payment services. Under this law, it is illegal to melt circulating coins. Coins no longer in circulation may be scrapped under central bank regulations. Law No. 194 also allows the Egyptian Finance Ministry and the central bank to change the metal composition of coins with no time stipulations on making such changes.
Specifics of the new E£2 coin denomination were not immediately available; however, Kamel stressed that the coin will be accompanied by modifications to the currency’s technical specifications, as well as an encouragement to expand the use of digital payments. Kamel also said he sees the use of larger denominations as helping reduce reliance on large quantities of smaller denominations.
Egypt officially uses coins in denominations of 5, 10, 20, 25, and 50 piastres (half pound) and 1 pound. Bank note denominations officially in use are in denominations of 25 and 50 piastres and 1, 5, 10, 20, 50, 100, and 200 Egyptian pounds. Coins in denominations lower than half a pound are rarely seen in circulation due to their low purchasing power. An Egyptian E£10 note is currently worth about 18¢, meaning a new E£2 coin would be valued at less than 4¢.
The current 2026-dated E£1 coin is a ringed bimetal issue with a brass-plated steel center and a nickel-plated steel outer ring. The coin weighs 8.5 grams and has a diameter of 25 millimeters.
The other coin typically seen in circulation is the 50 piastre. These coins weigh 6.5 grams and are composed of brass-plated steel. Both denominations are magnetic.
Domestic coinage is produced at the Egyptian Mint Authority in Cairo. The mint was established in 1954 and operates under the authority of the Ministry of Finance. The mint also produces Egyptian commemorative coins and has occasionally struck coins for other countries, such as Saudi Arabia, Syria, and Yemen.
The mint was authorized by King Farouk in 1950, with land in Eastern Abbassia near Cairo designated for the plant. In 1952, Farouk, himself a fanatical coin collector, was overthrown. The mint finished construction the following year, but didn’t open until the second anniversary of the revolution. The first coins produced there are comprised of aluminum bronze.
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