Saudi Riyal exchange rate in Egypt today against the Egyptian Pound, real-time update

The Saudi riyal saw a notable increase against the Egyptian pound in today's trading, reaching new highs in several major Egyptian banks. This shift comes amidst significant economic transformations in Egypt, most notably the Central Bank of Egypt's decision in March 2024 to fully liberalize the pound's exchange rate, allowing it to be determined by market supply and demand.

According to the latest data, the average exchange rate of the Saudi Riyal at the Central Bank of Egypt was approximately 14.12 Egyptian pounds for buying and 14.16 Egyptian pounds for selling. Below is a breakdown of exchange rates at major banks operating in Egypt:

• National Bank of Egypt: The buying price was recorded at 14.26 Egyptian pounds, and the selling price at 14.36 Egyptian pounds.
• Bank of Egypt: The buying price was 14.28 Egyptian pounds, and the selling price was 14.36 Egyptian pounds.
• Bank of Alexandria: The buying price reached 14.26 pounds, and the selling price reached 14.37 pounds.
• Commercial International Bank (CIB): The buying price was recorded at 14.28 Egyptian pounds, and the selling price at 14.33 Egyptian pounds.

These figures show a slight variation between banks, which is normal under a flexible exchange rate system that allows each bank to set its rates based on its own mechanisms and the size of its supply and demand.

Economic context and historical background

This rise in the price of the Saudi riyal (pegged to the US dollar) directly reflects the depreciation of the Egyptian pound following its recent flotation. For decades, Egypt maintained a managed exchange rate system, leading to accumulated economic pressures and the emergence of a parallel market (black market) for foreign currency. The decision to float the exchange rate was a necessary reform aimed at eliminating the parallel market, attracting foreign direct investment, and meeting the requirements of international financial institutions such as the International Monetary Fund to secure new financing packages.

The importance of the Saudi Riyal exchange rate for Egypt

The Saudi riyal exchange rate is of particular importance to the Egyptian economy and citizens for several key reasons:

1. Remittances from Egyptians working abroad: Saudi Arabia is the primary destination for Egyptian workers abroad, with millions of Egyptians employed there. Their remittances in Saudi Riyals constitute a major source of hard currency for Egypt. The rising value of the Riyal increases the value of the money these workers send to their families in Egyptian Pounds, thus boosting their purchasing power and supporting domestic consumption.
2. Hajj and Umrah seasons: Millions of Egyptians who perform Hajj and Umrah annually rely on purchasing Saudi Riyals. The exchange rate directly impacts the overall cost of their religious trips, making it a vital indicator for this large segment of society.
3. Trade relations: Saudi Arabia and Egypt are major trading partners. The exchange rate affects the cost of Egyptian imports from Saudi Arabia, as well as the competitiveness of Egyptian exports to the Saudi market.

Stabilizing the exchange rate at realistic levels reflects the true value of the pound and is a key step towards achieving macroeconomic stability and enhancing confidence in the Egyptian economy both domestically and internationally.