Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £3 per month, your representative rate is 27.7% APR (variable).
Whether you’re going to snorkel among the colourful fish of the reef or visit the symbols of Egypt’s thousand-year-old history, you’ll need to sort your money out before travelling.
Egypt is still a mostly cash-based society. Although credit card payments are becoming increasingly common and will be taken by many hotels and restaurants in Cairo or other tourist locations, you’ll need cash to enjoy the local cuisine or shop for textiles and spices at the souk.
The local currency is the Egyptian pound. In 2016, the government unpegged it from the US dollar, thus freeing the exchange rate and causing the Egyptian pound to lose almost half of its value – however, the rate has been comparatively stable ever since.
Bargaining is common practice in Egypt, so carrying cash will also ensure that you can get the best deals while shopping.
Egypt’s network of ATMs has improved significantly over the years, and you can also find some belonging to the Western banks that operate in Egypt, such as HSBC and Credit Agricole.
However, while you won’t have any difficulties in finding an ATM in Cairo or Alexandria, things may become trickier if you’re heading for a more rural area, or (unsurprisingly) if you’re planning an excursion into the desert. As a general rule, don’t wait until you run out of cash to get some.
ATMs will often charge their own fee for cash withdrawals, although it can depend on the bank they belong to. They’ll also ask you if you want them to handle the currency conversion – it’s usually cheaper to refuse and let your bank at home do it, especially if you’re using a debit card that doesn’t charge foreign transaction fees.
Goods and services come comparatively cheap in Egypt for British travellers, so it would be a shame not to indulge in some local shopping. For that, you’ll definitely need cash. Be prepared to bargain the price for a while, sometimes even over a cup of mint tea – if you’re in a hurry, you’ll probably end up paying a bit more.
Some tours or services will display prices in Western currencies, usually US dollars or euros. However, they are not accepted everywhere, and you’ll probably get a better rate if you simply change your currency into the local one beforehand.
Since the currency’s value crashed in 2016, coins smaller than LE1 have become less and less common. LE5, LE10, LE20, LE50, LE100 and LE200 notes are all commonly used. It’s best to always keep some change ready as tipping is also expected pretty much everywhere.
You should follow some basic rules to ensure the safety of your card, particularly when withdrawing money from an ATM:
When weighing the pros and cons of cash and card payments in Egypt, you should take into account the range of fees that credit cards can incur:
Here’s a fairly typical section from a credit card’s terms and conditions showing non-sterling usage fees that are pretty standard.
Additionally, you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction, for example, “2.5% of the transaction, minimum £3.00”.
There’s no point in exchanging your money before leaving – you’ll usually be offered a better rate once you land, especially if you avoid doing it at hotels and airports. However, there are a few things that it’s better to sort out well in advance:
Almost half of Brits (44%) have a side hustle in 2023. The average income from side hustles is £205.79 per week, or £10,701.24 per year.
Starling launches a money management tool to help you divide up your salary and send funds to different accounts automatically.
Why George Sweeney believes Berkshire Hathaway is one to watch. This week’s share tip. Not financial advice or a recommendation.
Nationwide is planning to give eligible members £100 in June as part of its newly launched Fairer Share scheme.
There’s lots to consider when buying cryptocurrency. Here’s your step-by-step guide.
Your kids’ bank account is often where your child starts their financial journey – here’s how we decide our star ratings for them.
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
We’ve tested, analysed and scored trading apps to find the 10 best trading platforms in the UK, who they’re best for and the pros and cons.
Our guide explains all you need to know about the card reader payment process.
