The Saudi riyal saw a notable stability today, with a slight downward trend in some Egyptian banks against the Egyptian pound, at the start of morning trading. The Saudi currency's exchange rate is closely and continuously monitored by a wide segment of the population due to its significant economic and social importance, whether for those traveling to perform Umrah and Hajj or for Egyptians working in Saudi Arabia who send remittances to their families.
Saudi Riyal exchange rate in Egyptian banks today
According to the latest real-time trading screens, the exchange rates at the most prominent banks operating in the Egyptian banking sector were as follows:
- The Central Bank of Egypt: The average price recorded was 12.47 Egyptian pounds for buying and 12.51 Egyptian pounds for selling.
- National Bank of Egypt: The price reached 12.44 Egyptian pounds for buying and 12.51 Egyptian pounds for selling.
- Bank of Egypt: It recorded approximately 12.44 Egyptian pounds for buying and 12.51 Egyptian pounds for selling.
- Bank of Alexandria: The price reached 12.48 pounds for buying and 12.52 pounds for selling.
- Commercial International Bank (CIB): Recorded 12.46 pounds for buying, and 12.51 pounds for selling.
- Abu Dhabi Islamic Bank: Recorded 12.16 pounds for buying, and 12.50 pounds for selling.
- Al Baraka Bank: It reached 12.41 pounds for buying, and 12.50 pounds for selling.
- Suez Canal Bank: Recorded 12.42 pounds for buying, and 12.51 pounds for selling.
Compared to yesterday's trading
Comparing current prices with yesterday's trading , we observe very slight movements. The Egyptian pound was trading at 12.48 EGP for buying and 12.52 EGP for selling at the Central Bank yesterday, indicating a slight decrease of one piaster today. At the National Bank of Egypt and Banque Misr, the buying price was 12.45 EGP yesterday, reflecting relative stability in the official exchange market. This reinforces confidence in the current banking mechanisms for determining the exchange rate based on supply and demand.
The economic context and the importance of the Saudi Riyal
The Saudi riyal holds strategic importance in the Egyptian market for several key reasons. First, remittances from Egyptians working abroad, particularly in Saudi Arabia, are a major source of foreign currency for the Egyptian economy. Any fluctuations in the exchange rate directly affect the purchasing power of these remittances when converted into local currency.
Secondly, this stability comes as a result of the monetary policies pursued by the Central Bank of Egypt to regulate the exchange market and eliminate the parallel market, leading to a unified exchange rate and its availability through official channels. Historically, the local currency has witnessed significant fluctuations since previous exchange rate liberalization decisions, but the current period is experiencing a degree of price equilibrium supported by cash inflows and foreign direct investment, most notably the Ras al-Hikma deal, which bolstered foreign currency reserves.
Expected effects
This relative stability is expected to continue in the near term, provided that dollar and foreign currency inflows remain at normal levels. The Saudi riyal is pegged to the US dollar globally (due to the currency peg), therefore any movement in the global dollar index or any change in the value of the Egyptian pound against the dollar is automatically reflected in the riyal's exchange rate in Egyptian banks.
