The Saudi riyal exchange rate against the Egyptian pound remained remarkably stable during trading today, coinciding with the weekend holiday for Egyptian banks. The average exchange rate at the Central Bank of Egypt was recorded at approximately 12.55 Egyptian pounds for buying and 12.59 Egyptian pounds for selling, reflecting a period of relative calm in the foreign exchange market after a period of slight fluctuations last week.
Details of Saudi Riyal exchange rates in Egyptian banks
Prices varied slightly between different banks, with the prices recorded today being as follows:
- The National Bank of Egypt and Banque Misr: The price of the riyal was recorded at 12.51 Egyptian pounds for buying and 12.58 Egyptian pounds for selling. These are the two largest government banks in Egypt and they hold a large share of banking transactions.
- Commercial International Bank (CIB): The price was 12.53 Egyptian pounds for buying and 12.58 Egyptian pounds for selling.
- Abu Dhabi Islamic Bank: The highest buying price was recorded at 12.59 pounds, while the selling price was recorded at 12.61 pounds.
- Bank of Alexandria: Recorded 12.51 pounds for buying and 12.56 pounds for selling.
- Suez Canal Bank: Recorded 12.50 Egyptian pounds for buying and 12.59 Egyptian pounds for selling.
Compared to last week's trading
Comparing current prices to last week's transactions, we observe a slight decrease in the Saudi riyal's value. The average price at the Central Bank last week was 12.64 Egyptian pounds for buying and 12.68 Egyptian pounds for selling. This movement reflects market dynamics and the supply and demand mechanisms that govern the exchange rate under the current flexible exchange rate system.
The economic context and the importance of the Saudi Riyal
The Saudi riyal's exchange rate is of paramount importance to the Egyptian public for several fundamental economic and social reasons. Firstly, Saudi Arabia is the primary destination for Egyptian expatriates, and remittances from Egyptians working in the Kingdom are a major source of hard currency for the Egyptian economy, making the exchange rate a vital indicator of the value of these savings.
Secondly, the demand for the riyal is linked to the Hajj and Umrah seasons, as demand for it increases seasonally to cover travel and accommodation expenses in the holy sites. As peak seasons approach, travel agencies and individuals closely monitor prices to determine travel costs.
Impact of monetary policies
This stability is a result of the monetary policies pursued by the Central Bank of Egypt to regulate the exchange market and eliminate the parallel market. The stability of the riyal's exchange rate, which is indirectly linked to the global movement of the dollar (due to the riyal's peg to the dollar), indicates the current stability of the Egyptian pound against a basket of major currencies, thus reassuring both investors and importers.
