The Saudi riyal saw remarkable stability against the Egyptian pound in early morning trading, maintaining its exchange rate levels across most banks operating within the Egyptian banking sector. This stability reflects a balance between supply and demand for foreign currencies, indicating the success of recent monetary policies in stabilizing the exchange market.
Saudi Riyal exchange rate in Egyptian banks today
According to the latest updates on bank display screens, the Saudi Riyal exchange rates are as follows:
- The Central Bank of Egypt: The average exchange rate recorded 12.69 Egyptian pounds for buying and 12.72 Egyptian pounds for selling.
- National Bank of Egypt: The price reached 12.66 Egyptian pounds for buying and 12.73 Egyptian pounds for selling.
- Bank of Egypt: The price recorded was 12.66 Egyptian pounds for buying and 12.73 Egyptian pounds for selling.
- Commercial International Bank (CIB): The price reached 12.68 Egyptian pounds for buying and 12.73 Egyptian pounds for selling.
- Bank of Alexandria: Recorded 12.69 pounds for buying, and 12.73 pounds for selling.
- Abu Dhabi Commercial Bank: Recorded 12.36 pounds for buying, and 12.70 pounds for selling.
- Al Baraka Bank: It reached 12.62 pounds for buying, and 12.71 pounds for selling.
- Suez Canal Bank: Recorded 12.66 Egyptian pounds for buying and 12.74 Egyptian pounds for selling.
The importance of the Saudi Riyal in the Egyptian economy
The Saudi riyal holds special significance in the Egyptian market, extending beyond its role as a mere foreign currency, due to the strong economic and trade ties between Egypt and Saudi Arabia. It is among the most sought-after currencies in Egyptian banks, primarily because of the Hajj and Umrah seasons, which see a surge in Egyptian pilgrims, thus increasing demand for the Saudi currency to cover travel and accommodation expenses in the Kingdom.
Furthermore, remittances from Egyptians working in Saudi Arabia play a pivotal role in supporting Egypt's foreign currency reserves. The Egyptian community in Saudi Arabia is one of the largest expatriate communities, and their remittances in Saudi riyals (often converted to dollars or Egyptian pounds) contribute to increased dollar liquidity in Egyptian banks, thus helping to stabilize the exchange rate overall.
Monetary stability and its impact on markets
The stability of the Saudi riyal at around 12.73 Egyptian pounds for selling is a sign of the improved financial situation following the recent economic decisions by the Central Bank of Egypt to float the currency and eliminate the parallel market. This stability provides importers and investors with a clear picture of their future costs, as Saudi Arabia is a strategic trading partner for Egypt, and a stable exchange rate facilitates trade between the two countries and prevents sudden price fluctuations in imported goods.
In a related context, yesterday's trading was relatively calm, coinciding with the official holidays, as prices stabilized at approximately the same rates mentioned, confirming the absence of current speculation affecting the currency's value.
