The Saudi riyal exchange rate against the Egyptian pound remained relatively stable, with a slight downward bias, in today's trading, according to the latest updates from Egyptian banks' trading screens. This movement is part of the supply and demand dynamics currently governing the Egyptian foreign exchange market, with the average exchange rate at the Central Bank of Egypt recorded at 12.60 Egyptian pounds for buying and 12.63 Egyptian pounds for selling.
Details of the Saudi Riyal exchange rate in Egyptian banks today
Prices varied slightly between different banks, with the details as follows:
- National Bank of Egypt and Banque Misr: The price of the riyal recorded 12.56 Egyptian pounds for buying and 12.63 Egyptian pounds for selling, reflecting stability in the two largest government banks in Egypt.
- Commercial International Bank (CIB): The price was 12.59 Egyptian pounds for buying and 12.63 Egyptian pounds for selling.
- Bank of Alexandria: Recorded 12.60 pounds for buying and 12.64 pounds for selling.
- Abu Dhabi Commercial Bank: The lowest buying price was recorded at 12.36 pounds, while the selling price was recorded at 12.70 pounds.
- Al Baraka Bank: The price reached 12.53 pounds for buying and 12.62 pounds for selling.
- Suez Canal Bank: Recorded 12.56 pounds for buying and 12.65 pounds for selling.
Compared to yesterday's trading
Compared to yesterday's trading, a slight decline in the Saudi riyal's value was observed. The average exchange rate at the Central Bank of Egypt yesterday was 12.67 for buying and 12.71 for selling, indicating a decrease of several piasters. Rates at commercial banks were relatively higher, with the Suez Canal Bank recording a selling rate of 12.74 yesterday, confirming the general trend towards calmer speculation and market stability.
The importance of the stability of the Saudi Riyal exchange rate
The Saudi riyal's exchange rate is of paramount importance to the Egyptian public and the local economy for several key reasons. Firstly, remittances from Egyptians working in Saudi Arabia are a vital source of foreign currency for Egypt, as the Kingdom hosts the largest Egyptian expatriate community. A stable exchange rate encourages expatriates to transfer their savings through official channels and banks rather than the parallel market.
Secondly, the demand for the Saudi riyal is linked to the Hajj and Umrah seasons, when demand increases to cover travel and accommodation expenses in the holy sites. The stable exchange rate of 12.60 Egyptian pounds is a positive indicator for pilgrims and tourism companies, as it facilitates financial planning for the trips.
General economic context
This stability in exchange rates is part of a broader economic landscape in Egypt following the Central Bank's decisions to liberalize the exchange rate, unify the currency's value, and eliminate the black market. Recent dollar inflows and major investment agreements have contributed to bolstering foreign currency reserves, positively impacting the stability of the Egyptian pound against a basket of foreign currencies, including the Saudi riyal.
