The Egyptian foreign exchange market witnessed remarkable stability today in the exchange rate of the Saudi riyal against the Egyptian pound, with the Saudi currency maintaining its levels at the Central Bank of Egypt and most banks operating in the banking sector. This stability is part of the recent equilibrium in the Egyptian foreign exchange market, reflecting the success of monetary policies in eliminating the parallel market and unifying the exchange rate.
Details of exchange rates in Egyptian banks today
According to the latest updates on trading screens, the average exchange rate of the Saudi riyal at the Central Bank of Egypt approximately 12.59 Egyptian pounds for buying and 12.62 Egyptian pounds for selling. At the largest state-owned bank, the National Bank of Egypt , the rate was 12.55 Egyptian pounds for buying and 12.62 Egyptian pounds for selling, the same rates recorded by Banque Misr , reflecting a convergence in currency pricing between the two largest banks in Egypt.
Among private banks, Commercial International Bank (CIB) a buying price of EGP 12.57 and a selling price of EGP 12.62. At Bank of Alexandria , the price was EGP 12.58 for buying and EGP 12.62 for selling. Meanwhile, Abu Dhabi Commercial Bank EGP 12.36 for buying and EGP 12.70 for selling, Al Baraka Bank EGP 12.52 for buying and EGP 12.61 for selling, and Suez Canal Bank EGP 12.55 for buying and EGP 12.64 for selling.
The economic context and the importance of exchange rate stability
The Saudi riyal's exchange rate holds paramount importance in Egypt, not only because it serves as a currency for trade, but also due to the strong economic ties between Egypt and Saudi Arabia. Remittances from Egyptians working in Saudi Arabia are a crucial source of foreign currency for Egypt, as the Kingdom hosts the largest Egyptian expatriate community. Therefore, the stable exchange rate at 12.60 Egyptian pounds provides reassurance to expatriates and encourages them to send remittances through official banking channels rather than the informal methods that were prevalent before the recent currency liberalization decisions.
The impact of holidays and market stability
It is worth noting that yesterday's trading was completely stable due to the banks' weekend holiday, with prices remaining at approximately the same levels mentioned. This relative calm in currency movements is a positive indicator of the availability of dollar liquidity and foreign currency in banks to meet the needs of importers and pilgrims, especially with the approach of religious travel seasons, during which demand for the Saudi riyal increases.
Experts confirm that the continuation of this price stability contributes to curbing imported inflation and helps companies to plan financially soundly without fear of sudden fluctuations in currency prices, which ultimately serves the interests of the macroeconomy.
