A cup of coffee at a hotel costs about £e5 ($1.30); a falafel sandwich £e1 (25¢); a can of Coke £e1.50 (39¢); and a 2 km (1 mi) taxi ride in Cairo £e5.

After years of being pegged to the dollar, Egypt's currency began slipping in the autumn of 2000—bad news for Egyptians but good news for travelers coming from the United States. To stretch your dollars even further, avoid five-star restaurants and hotels, many of which charge in dollars or at least gauge their prices to a dollar standard.

ATMs

ATMs are found all over Cairo in banks and major hotels. Major shopping areas of most smaller cities and tourist areas also have them. Just ask where the nearest makinat al-flus (money machine) is. Carrying cash is not much of a worry here (as long as you're not riding on public buses).

Currency

The Egyptian pound (£e) is divided into 100 piasters (pt). Bank notes currently in circulation are the following: 10p, 25p, and 50p notes; £e1, £e5, £e10, £e20, £e50, and £e100 notes. There are also 5pt, 10pt, 20pt, and 25pt coins. Don't accept any dog-eared bills, as many vendors will refuse to take them. Just politely give it back and ask for a newer bill.

Exchanging Money

You can easily change money through banks, which charge a small fee. Although ATM transaction fees may be higher abroad than at home, ATM rates are excellent because they're based on wholesale rates offered only by major banks. You won't do as well at exchange booths in airports or rail and bus stations, in hotels, in restaurants, or in stores. To avoid lines at airport exchange booths get a bit of local currency before you leave home.

Local exchange offices keep later hours than most banks, and branches are everywhere. Just ask for the nearest sarrafa. Each office is free to set its own rate, so shop around. At times you can get a much better rate than banks offer. These offices do not charge a separate fee—it's factored in to the exchange rate posted.

Taxes

Egypt doesn't have a value-added tax. The taxes you will have to reckon with are in restaurants and hotels. Meal taxes vary around the county; in Cairo they're as high as 26%. Hotel taxes in Cairo, Sharm al-Sheikh, and Hurghada are 19%; 21% in Luxor and Aswan. Price categories for restaurants and hotels in this guide include these taxes.

Tipping

Baksheesh is a word that every traveler to Egypt gets well acquainted with. It means tip, and many people expect one. For this reason it's important to carry around a good number of 50p notes and £e1 bills in your pocket. Porters, taxi drivers, doorkeepers, and many others will expect this of you. There's no need to give a lot of money; small tips are fine. It's customary to leave a 10% tip (before taxes) at a restaurant. The bill already has a 12% service charge, a 5% government tax, and a 2% city tax included in the total. A similar tip is expected for bartenders.

For taxi drivers, the tip is usually covered in the fare; tip an extra pound if the driver has made an extra effort to get you to your destination. Rest-room and gas-station attendants, ushers, and theater attendants usually receive between 50p and £e1 for their services. If you have an especially good tour guide, a tip of £e5-10 is in order, depending on the length of the tour.

In hotels, rates vary according to the level. In five-star hotels, a £e10 tip may be in order for the porter, particularly if you have lots of luggage; about half that is the norm for lower-scale hotels. Chambermaids get about £e5 for each visit, although this depends on the level of service. Room-service waiters, like restaurant waiters, should be tipped approximately 10% of the total bill.