The Egyptian foreign exchange market witnessed significant fluctuations in the prices of Arab and foreign currencies, with the average exchange rate of the Saudi riyal rising noticeably today in transactions at the Central Bank of Egypt and commercial banks operating in the banking sector. This movement comes within the framework of supply and demand mechanisms currently governing the banking market, amid close monitoring by investors and citizens.
Saudi Riyal exchange rate at the Central Bank and commercial banks
the Central Bank of Egypt recorded an increase in the average price of the Saudi currency, with the price reaching about 12.66 Egyptian pounds for buying and 12.60 Egyptian pounds for selling, reflecting activity in trading.
As for the major commercial banks, the prices were as follows:
- National Bank of Egypt and Bank Misr: The riyal recorded 12.48 Egyptian pounds for buying and 12.58 Egyptian pounds for selling.
- Bank of Alexandria and Commercial International Bank (CIB): The price remained stable at the same levels, recording 12.48 pounds for buying and 12.58 pounds for selling.
- Abu Dhabi Commercial Bank and Suez Canal Bank: recorded a slightly higher price of 12.5 pounds for buying and 12.6 pounds for selling.
- Al Baraka Bank: Recorded 12.47 pounds for buying and 12.57 pounds for selling.
Compared to yesterday's transactions
Compared to yesterday's trading, the difference is clear, with stability prevailing. The Central Bank recorded an average of 12.40 Egyptian pounds for buying and 12.54 for selling yesterday, while the major state-owned banks (National Bank of Egypt and Banque Misr) recorded 12.42 for buying and 12.52 for selling, indicating a slight increase in today's trading that reflects the changing market dynamics.
Economic context and exchange rate liberalization
Monitoring exchange rates, particularly the Saudi riyal, has become especially important given the recent economic changes in Egypt. Since the Central Bank of Egypt adopted a flexible exchange rate policy, allowing the value of the Egyptian pound to be determined by market mechanisms (supply and demand), prices have become more fluid, fluctuating based on cash flows and import needs. This policy primarily aims to eliminate the parallel market and unify the exchange rate to ensure macroeconomic stability and attract foreign direct investment.
The importance of the Saudi Riyal in the Egyptian economy
The Saudi Riyal is one of the most sought-after currencies in the Egyptian market for two main reasons that give it a relatively large weight in the basket of foreign currencies:
- Remittances from Egyptians abroad: The Kingdom of Saudi Arabia hosts the largest Egyptian community abroad, and their remittances in Saudi Riyals are a major source of foreign currency in Egypt, which makes the exchange rate a direct influence on the value of these savings and their purchasing power when converted to Egyptian Pounds.
- Umrah and Hajj Season: With the continuation of Umrah seasons throughout the year and the approaching arrangements for the Hajj season, the actual demand for the Saudi Riyal increases among citizens wishing to travel to the Holy Land to cover accommodation and living expenses there, which in turn affects the daily price movement in banks and exchange companies.
