The Saudi riyal continues to rise against the Egyptian pound in today's trading
The Saudi riyal saw a notable rise against the Egyptian pound in today's trading at Egyptian banks, continuing a trend of price fluctuations that followed recent economic decisions by the Central Bank of Egypt. This rise reflects the dynamics of supply and demand in the foreign exchange market and carries broad implications for various sectors of the economy and citizens.
Background and context of exchange rate liberalization
This exchange rate change is part of the fallout from the Central Bank of Egypt's historic decision in March 2014 to fully float the Egyptian pound, allowing it to be determined by market forces. This decision, aimed at eliminating the parallel currency market and unifying the exchange rate, led to a significant depreciation of the pound against major currencies such as the US dollar. Since the Saudi riyal is pegged to the dollar, its value automatically appreciated against the pound. These reforms are intended to boost international investor confidence and attract foreign investment, as part of a broader economic reform package supported by the International Monetary Fund.
The importance of the Saudi Riyal exchange rate to the Egyptian economy
The Saudi riyal exchange rate is of particular importance in Egypt for several key reasons. First, the large Egyptian workforce in Saudi Arabia means that remittances from Egyptians working abroad constitute a vital source of hard currency. A stronger riyal increases the value of these remittances in Egyptian pounds, benefiting thousands of Egyptian families. Second, the riyal is a primary currency for millions of Egyptians who perform Hajj and Umrah pilgrimages annually, and the exchange rate directly impacts the cost of their trips. Finally, the two countries enjoy strong trade and investment ties, with Saudi Arabia being one of the largest investors in the Egyptian market, making exchange rate stability crucial for bilateral investment and trade flows.
List of Saudi Riyal exchange rates in major Egyptian banks today
Below are the details of the Saudi Riyal exchange rates for buying and selling in a number of banks operating in Egypt today:
- The Central Bank of Egypt: The buying price was recorded at 12.71 Egyptian pounds, and the selling price at 12.74 Egyptian pounds.
- National Bank of Egypt: The buying price was recorded at 12.68 Egyptian pounds, and the selling price at 12.75 Egyptian pounds.
- Bank of Egypt: The buying price was recorded at 12.69 Egyptian pounds, and the selling price at 12.76 Egyptian pounds.
- Bank of Alexandria: The buying price was recorded at 12.71 Egyptian pounds, and the selling price at 12.75 Egyptian pounds.
- Commercial International Bank (CIB): The buying price was recorded at 12.71 Egyptian pounds, and the selling price at 12.76 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was recorded at 12.68 pounds, and the selling price at 12.75 pounds.
- Suez Canal Bank: The buying price was recorded at 12.67 Egyptian pounds, and the selling price at 12.76 Egyptian pounds.
- National Bank of Kuwait (NBK): The buying price was recorded at 12.61 Egyptian pounds, and the selling price at 12.90 Egyptian pounds.
- Qatar National Bank (QNB): The buying price was recorded at 12.64 Egyptian pounds, and the selling price at 12.75 Egyptian pounds.
- HSBC Bank: The buying price was recorded at 12.72 pounds, and the selling price at 12.75 pounds.
The exchange rate of the Saudi riyal and other currencies is expected to continue to move based on market variables, under the flexible exchange rate policy currently adopted by the central bank.
