Short answer: the dollar rate you see on rate websites, including our USD to EGP page, is the mid-market rate: the midpoint between what the market pays for dollars and what it sells them for. A bank or exchange office gives you a lower buy rate when you sell dollars to it, and a higher sell rate when you buy dollars from it. The gap is the provider's margin, and knowing it helps you pick the best offer.
What is the mid-market rate?
At any moment the currency market has two prices: the highest price someone will pay for a dollar (the bid) and the lowest price someone will sell one for (the ask). The ask is always a little higher. The mid-market rate sits halfway between them. Retail customers rarely get exactly this rate, but it is the fairest benchmark for judging any quote.
Buy rate vs sell rate at an Egyptian bank
A bank's rate board shows two columns:
- Buy rate: the price at which the bank buys dollars from you. It applies when you convert dollars into pounds, for example when you receive a transfer from abroad.
- Sell rate: the price at which the bank sells dollars to you. It applies when you need dollars, for example before travelling.
The bank always buys lower and sells higher, which is why buying dollars and selling them straight back loses a little money.
How to work out the difference in 30 seconds
You need two numbers: the mid-market rate at that moment and the rate the bank offers. Then:
Margin % = (difference between the two rates ÷ mid-market rate) × 100
Worked example
These figures are for illustration only, not current rates. Suppose the mid-market rate is 50 pounds per dollar and the bank buys your dollars at 49.80.
- Difference = 50 − 49.80 = 0.20 pounds per dollar.
- Margin = (0.20 ÷ 50) × 100 = 0.4%.
- On 1,000 dollars you receive 49,800 pounds instead of 50,000, so the conversion really cost you 200 pounds, even if you were told it was "commission free".
"No commission" does not mean free
A provider can truthfully advertise "no fees" while earning its money inside the exchange rate. Compare the final amount you receive for the same amount sent. A small visible fee with a rate close to the market is often cheaper than a "free" service with a weak rate. Our general guide to the mid-market rate vs bank rate covers this in more depth.
Why rates differ from bank to bank
- Competition and liquidity: each bank sets its own margin within the market.
- Cash vs transfer: exchanging banknotes usually costs more than a bank transfer, because cash has to be moved, stored and insured.
- Amount: larger amounts can get better rates and are sometimes negotiable.
- Market conditions: in volatile periods providers may widen their margins.
Practical steps to get a fair rate
- Check the market rate first on the USD to EGP page just before you go, because it moves.
- Get two or three quotes for the same amount and the same type of transaction.
- Write down the final amount for each quote after all fees.
- Calculate the margin with the formula above.
- Use licensed banks and exchange offices only and keep your receipt.
Frequently asked questions
Why doesn't the bank give me the market rate?
Banks carry operating costs and the risk that rates move, and they need a profit. What matters is that the gap is small compared with other providers.
Is the rate online the official rate?
It is a mid-market reference. Banks and the Central Bank of Egypt publish their own official buy and sell rates, which can differ slightly from the midpoint.
The bottom line
The mid-market rate is your measuring stick. The gap between it and the bank's rate, plus any visible fees, is the true cost of changing money. Take half a minute to check the rate and compare the final amount, and the savings add up over time.
This article is general information, not financial advice. Rates and fees change; always confirm the current terms with your provider. See our disclaimer.