The Egyptian foreign exchange market witnessed remarkable stability in the Saudi riyal's exchange rate against the Egyptian pound today, with the Saudi currency maintaining its levels at the Central Bank of Egypt and most banks operating in the banking sector. This stability is within the normal dynamics of supply and demand in the banking market, reflecting the availability of foreign currency to meet the needs of importers and citizens.
Saudi Riyal exchange rate in Egyptian banks today
According to the latest trading screens, the average exchange rate of the Saudi riyal at the Central Bank of Egypt approximately 12.48 Egyptian pounds for buying and 12.52 Egyptian pounds for selling. The Central Bank's rate is considered the main indicator reflecting the average market movement.
At the two largest state-owned banks, the National Bank of Egypt and Banque Misr , the Saudi riyal was trading at 12.45 Egyptian pounds for buying and 12.52 Egyptian pounds for selling, indicating a uniformity in selling prices among major banks. At Bank of Alexandria , the rate was 12.48 Egyptian pounds for buying and 12.52 Egyptian pounds for selling.
Exchange rates in private banks
Buying prices varied slightly among private banks, with Commercial International Bank (CIB) a price of 12.47 Egyptian pounds for buying and 12.52 Egyptian pounds for selling. At Abu Dhabi Commercial Bank , the price was 12.17 Egyptian pounds for buying and 12.51 Egyptian pounds for selling. Meanwhile, Al Baraka Bank 12.42 Egyptian pounds for buying and 12.51 Egyptian pounds for selling, and the price at Suez Canal Bank 12.44 Egyptian pounds for buying and 12.53 Egyptian pounds for selling.
Compared to yesterday's trading
Comparing current prices with yesterday's trading, we observe very slight movements, amounting to only a few piasters. Yesterday's selling price at the Central Bank was 12.53 Egyptian pounds, meaning a very slight decrease or near-complete stability at 12.52 pounds today. This relative stability sends a reassuring message to traders regarding the stability of the exchange market.
The importance of the Saudi Riyal in the Egyptian economy
The Saudi riyal holds particular significance in Egyptian society, extending beyond its status as a foreign currency, due to the strong economic and trade ties between Egypt and Saudi Arabia. This significance stems from several key factors:
- Remittances from Egyptians abroad: Saudi Arabia is the largest market for Egyptian labor abroad, and therefore remittances from Egyptians in Saudi Riyals constitute a major source of foreign currency in Egypt, which supports the monetary reserve.
- Umrah and Hajj season: The demand for the Saudi Riyal increases seasonally during the Umrah and Hajj periods, as thousands of Egyptian pilgrims need the Saudi currency to cover their expenses in the Holy Land, making monitoring its price vital for a wide segment of citizens.
- Trade exchange: Saudi Arabia is a strategic trading partner for Egypt, and the stability of the exchange rate facilitates trade exchange, import and export between the two countries, which is reflected positively on commodity prices in the local market.
In conclusion, the stability of the Saudi Riyal exchange rate at levels of 12.52 Egyptian pounds for selling indicates the success of the current monetary policies in controlling the exchange market and providing the necessary liquidity, which reduces speculation and achieves the required balance in the macroeconomy.
