The Saudi riyal saw a notable increase against the Egyptian pound at the close of trading on Sunday in Egyptian banks, reflecting the dynamics of supply and demand in the banking market and its susceptibility to numerous local and regional economic factors. This change comes within the framework of the flexible exchange rate policy pursued by the Central Bank of Egypt, which aims to achieve sustainable economic stability.
Historical background and economic context
These exchange rate fluctuations follow significant economic decisions made by the Egyptian government, most notably the decision to float the Egyptian pound in March 2024. This decision ended years of currency peg and allowed its value to be determined by market mechanisms, leading to daily volatility in foreign exchange rates against the pound. The Saudi riyal is closely linked to the Egyptian pound due to the strong economic ties between the two countries, which include extensive trade, significant Saudi investments in Egypt, and remittances from millions of Egyptians working in Saudi Arabia, a major source of hard currency for Egypt.
The importance of the event and its expected impact
The rise in the value of the Saudi riyal has direct repercussions for broad segments of Egyptian society. Domestically, this increase directly impacts the cost of Hajj and Umrah pilgrimages, whose services are priced in Saudi riyals, thus increasing the financial burden on citizens wishing to perform these religious duties. It also affects families who rely on remittances from their children working in Saudi Arabia, as the riyal's appreciation translates into greater purchasing power for these remittances in Egyptian pounds. Regionally, this shift reflects the strength and relative stability of the Saudi economy, bolstered by oil prices, in contrast to the challenges facing the Egyptian economy as it strives to attract foreign investment and bolster its foreign currency reserves.
Saudi Riyal exchange rates in major Egyptian banks
The following are the exchange rates of the Saudi Riyal against the Egyptian Pound in a number of banks at the end of trading on Sunday:
- Central Bank of Egypt: The purchase price recorded was 12.73 Egyptian pounds.
- National Bank of Egypt: Recorded 12.69 Egyptian pounds for buying and 12.76 Egyptian pounds for selling.
- Bank of Egypt: Recorded 12.69 Egyptian pounds for buying and 12.69 Egyptian pounds for selling.
- Cairo Bank: Recorded 12.66 Egyptian pounds for buying and 12.73 Egyptian pounds for selling.
- Bank of Alexandria: Recorded 12.69 pounds for buying, and 12.73 pounds for selling.
- Commercial International Bank (CIB): Recorded 12.73 pounds for buying, and 12.76 pounds for selling.
- Faisal Islamic Bank: Recorded 12.68 pounds for buying, and 12.75 pounds for selling.
- Abu Dhabi Islamic Bank: Recorded 12.72 pounds for buying, and 12.75 pounds for selling.
- National Bank of Kuwait: Recorded 12.60 pounds for buying, and 12.88 pounds for selling.
- Qatar National Bank (QNB): Recorded 12.65 Egyptian pounds for buying and 12.76 Egyptian pounds for selling.
