The Saudi riyal exchange rate against the Egyptian pound remained remarkably stable during today's trading, with Egyptian banks' trading screens showing similar levels, reflecting a balanced foreign exchange market. This stability comes amid close monitoring by investors and citizens of the movements of Arab and foreign currencies, given the Saudi riyal's economic and social importance in Egypt.
Saudi Riyal exchange rate at the Central Bank and government banks
The average exchange rate for the Saudi riyal at the Central Bank of Egypt today was approximately 12.54 Egyptian pounds for buying and 12.58 Egyptian pounds for selling, reflecting the official rate used in banking transactions. The rates at the two largest state-owned banks in terms of assets and transactions were as follows:
- National Bank of Egypt: Recorded a price of 12.51 Egyptian pounds for buying and 12.58 Egyptian pounds for selling.
- Bank of Egypt: Recorded the same levels at 12.51 Egyptian pounds for buying and 12.58 Egyptian pounds for selling.
Exchange rates in private and investment banks
Prices varied slightly in private banks, where the following figures were recorded:
- Bank of Alexandria: 12.54 EGP for buying, and 12.59 EGP for selling.
- Commercial International Bank (CIB): 12.53 EGP for buying, and 12.58 EGP for selling.
- Abu Dhabi Commercial Bank: 12.36 Egyptian pounds for buying, and 12.70 Egyptian pounds for selling.
- Al Baraka Bank: 12.48 EGP for buying, and 12.57 EGP for selling.
- Suez Canal Bank: 12.49 Egyptian pounds for buying, and 12.58 Egyptian pounds for selling.
Compared to yesterday's transactions
Comparing today's prices with yesterday's transactions, we observe very slight movements tending towards stability. The Central Bank of Egypt recorded 12.55 for buying and 12.59 for selling yesterday, while the National Bank of Egypt and Banque Misr recorded 12.53 for buying and 12.60 for selling. This indicates a very slight decrease in today's selling price by approximately two piasters, which reinforces market stability.
The importance of the Saudi Riyal and its economic impact
The Saudi riyal holds immense importance in Egypt for several fundamental reasons that go beyond its status as a foreign currency. Firstly, Saudi Arabia is the primary destination for Egyptian expatriate workers, and therefore, remittances from Egyptians in Saudi riyals constitute a vital source of foreign currency for Egypt, contributing significantly to the Central Bank's foreign exchange reserves.
Secondly, the demand for the Saudi riyal is linked to the Hajj and Umrah seasons, as demand for it increases periodically from pilgrims to cover their expenses in the holy sites. This seasonal demand makes monitoring the riyal's exchange rate vital for a large segment of Egyptian families and religious tourism companies.
Third, the large volume of trade between Egypt and Saudi Arabia makes the stability of the exchange rate an important factor for importers and exporters, as stability contributes to accurately determining the costs of exchanged goods and services, which supports intra-regional trade and joint investments between the two brotherly countries.
This current stability is a result of the monetary policies pursued by the state to control the exchange market and eliminate the parallel market, which has led to the availability of currency in legitimate channels and the unification of the exchange rate according to supply and demand mechanisms.
