US Treasury Secretary Scott Bessent signaled that Washington will likely unveil new weekly “secondary sanctions” targeting banks to amplify economic pressure on Iran, following a Treasury proposal on Friday to sanction Banque Misr in the United Arab Emirates over alleged financial links to Tehran.
The US Treasury proposed regulatory sanctions on the Egyptian lender’s UAE branch, including blocking its access to US financial institutions and correspondent banking networks, after accusing the institution of facilitating financial flows to entities tied to Iran.
Speaking to Reuters on Sunday, Bessent warned that subsequent actions could involve fully severing targeted institutions from the dollar-based global financial system.
The impending restrictions fall under a broader US campaign “unleashed” Aug. 24 under directives from President Donald Trump, titled “Operation Economic Outcast.” According to the US Treasury, the “unprecedented” move aims “to sever every remaining economic lifeline sustaining the Islamic Republic of Iran.”
Coinciding with the US announcements, the US dollar gained roughly 40 piasters against the Egyptian pound, reaching 50.97 pounds at the National Bank of Egypt.
Mina Rafik, senior analyst at Prime Investments, attributed part of the currency shift to anxiety surrounding Banque Misr’s UAE operations, alongside renewed regional tensions that prompted foreign investors to trim local market positions.
“The market experienced foreign selling pressure during the day, coupled with confusion arising from the Banque Misr development, which impacted exchange rate dynamics,” Rafik told Al Manassa.
However, Rafik emphasized that the immediate currency fluctuation does not signal a fundamental shift in the broader exchange rate trajectory. He noted that the market remains relatively stable and suggested the impact of ongoing tensions could prove temporary.
Meanwhile, the Central Bank of Egypt issued a statement Sunday confirming ongoing coordination with its UAE counterpart to ensure that Banque Misr branches in the UAE continue conducting all business operations normally.
