The Saudi riyal saw relative stability today, trending slightly upwards against the Egyptian pound in morning trading at Egyptian banks. The average exchange rate at the Central Bank of Egypt was approximately 12.58 Egyptian pounds for buying and 12.72 Egyptian pounds for selling. This movement is in line with the supply and demand mechanisms currently governing the Egyptian banking market.
Details of the Saudi Riyal exchange rate in Egyptian banks
According to the latest trading screens, the exchange rates of the Saudi currency in the most prominent banks operating in Egypt were as follows:
- National Bank of Egypt: The price of the riyal was recorded at 12.61 Egyptian pounds for buying and 12.71 Egyptian pounds for selling.
- Bank of Egypt: It was equal to the National Bank, recording 12.61 pounds for buying and 12.71 pounds for selling.
- Bank of Alexandria: It also recorded 12.61 pounds for buying and 12.71 pounds for selling.
- Commercial International Bank (CIB): The price was 12.61 Egyptian pounds for buying and 12.71 Egyptian pounds for selling.
- Abu Dhabi Commercial Bank: Recorded 12.53 pounds for buying, and 12.63 pounds for selling.
- Al Baraka Bank: Recorded 12.60 pounds for buying, and 12.70 pounds for selling.
- Suez Canal Bank: Recorded 12.62 pounds for buying, and 12.72 pounds for selling.
Compared to yesterday's transactions
Compared to yesterday's transactions, there has been a slight movement in prices. The average price of the Saudi Riyal at the Central Bank of Egypt was 12.53 Egyptian pounds for buying and 12.66 Egyptian pounds for selling. At the National Bank of Egypt and Banque Misr yesterday, it was 12.55 Egyptian pounds for buying and 12.65 Egyptian pounds for selling. This reflects a slight increase in today's transactions, amounting to a few piasters, which is normal given the flexibility of the exchange rate.
Economic context and exchange rate liberalization
The Saudi riyal's exchange rate holds particular significance for the Egyptian public due to the strong economic ties between Egypt and Saudi Arabia. These rates are influenced by the monetary policy adopted by the Central Bank of Egypt since last March, which involves a floating exchange rate system allowing market forces (supply and demand) to determine the currency's value. This policy has significantly contributed to eliminating the parallel market (black market) and unifying the exchange rate, thereby boosting foreign currency inflows through official channels.
The importance and impact of the Saudi Riyal
The Saudi riyal is one of the most sought-after currencies in the Egyptian market, not only for trade and import purposes, but also due to the Umrah and Hajj seasons, as pilgrims need the Saudi currency to cover their expenses in the holy sites. Furthermore, remittances from Egyptians working in Saudi Arabia play a pivotal role in supporting Egypt's foreign currency reserves, as the Kingdom is Egypt's largest Arab trading partner and a major source of remittances, making monitoring the exchange rate crucial for a wide segment of citizens and investors alike.
