Exchange rates for Arab and foreign currencies remained relatively stable, with a slight upward trend in some transactions. The Saudi riyal new highs today in both Egyptian public and private banks. This update is part of the daily monitoring of the Egyptian foreign exchange market, where the average exchange rate at the Central Bank of Egypt was approximately 12.61 Egyptian pounds for buying and 12.65 Egyptian pounds for selling, reflecting a balance between supply and demand within the banking sector.
Details of the Saudi Riyal exchange rate in Egyptian banks
Prices varied slightly between different banks, and the details of daily trading were as follows:
- National Bank of Egypt: The buying price recorded 12.58 Egyptian pounds, while the selling price recorded 12.65 Egyptian pounds.
- Bank of Egypt: The buying price was 12.57 Egyptian pounds, and the selling price was 12.64 Egyptian pounds.
- Bank of Alexandria: Recorded 12.61 pounds for buying, and 12.65 pounds for selling.
- Commercial International Bank (CIB): The price reached 12.59 Egyptian pounds for buying and 12.64 Egyptian pounds for selling.
- Abu Dhabi Commercial Bank: Recorded 12.30 pounds for buying, and 12.65 pounds for selling.
- Al Baraka Bank and Suez Canal Bank: recorded similar rates at 12.55 Egyptian pounds for buying and 12.64 Egyptian pounds for selling.
Compared to yesterday's trading
Comparing current prices with yesterday's trading, we observe a slight movement, as the average exchange rate at the Central Bank yesterday was 12.59 for buying and 12.62 for selling. This slight increase of a few piasters reflects the flexible market dynamics that follow current supply and demand mechanisms.
The importance of the Saudi Riyal in the Egyptian economy
The price of the Saudi Riyal is of paramount importance in the Egyptian street and the local economy for several fundamental reasons, which go beyond the mere fact that it is a foreign currency:
First, remittances from Egyptians abroad: Saudi Arabia is the largest host country for Egyptian workers abroad. These workers' remittances in Saudi Riyals are a major source of foreign currency for Egypt's reserves, meaning that exchange rate stability has a direct impact on the purchasing power of expatriate families and on Egypt's balance of payments.
Secondly, the Hajj and Umrah seasons: Demand for the Saudi Riyal is seasonally linked to Hajj and Umrah pilgrimages. As these religious seasons approach, the natural demand for the Saudi currency increases to cover travel and accommodation expenses within the Kingdom, which can sometimes lead to price fluctuations if not matched by an ample supply of the currency.
Economic context and exchange rate policies
This relative stability in the Saudi riyal's exchange rate comes amidst the monetary policies pursued by the Central Bank of Egypt to regulate the foreign exchange market and eliminate the parallel market. Recent economic decisions to liberalize and unify the exchange rate across banks have contributed to attracting more capital inflows and boosting confidence in the banking sector, which has positively impacted the availability and accessibility of currency for importers and travelers.
Economic forecasts indicate that the continued flow of Gulf investments, especially from Saudi Arabia, in addition to tourism revenues and the Suez Canal, will play a pivotal role in maintaining the stability of the exchange rate of the riyal and foreign currencies against the Egyptian pound in the coming period.
