You can easily exchange euros or US dollars to Egyptian pounds once in Egypt. Avoid exchanging your local currency to Egyptian currency abroad for the following reasons:
You'll get a really bad rate since there is limited reserved of Egyptian currency abroad.
It's illegal to import more than EGP 5000 which is approximately 300 US dollars.
Best place to exchange currency in Egypt.
First it's important to know that Egypt is largely a paper cash economy so you'll have to pay in cash at most stores and hotels. You can pay using your credit or debit card at a few outlets but you'll incur an extra charge of about 3%-10% the value of your purchases.
Best way to exchange currency in Egypt is by ATM withdrawal. Avoid exchanging currency at forex bureaus, the rates given here are really bad and you end up losing a lot of money.
Tip: Exchange your money in small amounts, it's illegal to export Egyptian pounds. Exchanging back your money to Euros or dollars can be difficult since there's a limited reserve of foreign currency in Egypt.
How to Tip in Egypt.
You'll be expected to give a tip (Baksheesh) of about 5-10% anywhere you receive nice services within Egypt.
Avoid tipping in foreign coins since these can't be exchanged to Egyptian pounds within Egypt. If you have to tip in foreign currency, use notes since they can be exchanged easily at banks and fired bureaus.
Note: It's common for staff who serve you to ask you to exchange their foreign coins for notes especially if you're from the US or Europe.