The exchange rate of the Saudi riyal against the Egyptian pound saw slight fluctuations at the start of the week in Egyptian public and private banks. The riyal's exchange rate is of great interest to a large segment of the Egyptian population, particularly those working in Saudi Arabia and their families, as well as pilgrims performing Umrah and Hajj who regularly monitor prices to determine the costs of their religious journeys.
Economic background: The importance of the Saudi Riyal in Egypt
The value of the Saudi riyal is closely linked to the performance of the Egyptian economy due to the strong economic ties between the two countries. Saudi Arabia hosts the largest Egyptian expatriate community, and remittances from Egyptians working there are a major source of hard currency for Egypt. These remittances, often made in Saudi riyals, play a vital role in supporting Egypt's balance of payments and bolstering its foreign exchange reserves, thus helping to stabilize the Egyptian pound's exchange rate.
Historically, the exchange rate has been heavily influenced by the monetary policies pursued by the Central Bank of Egypt. The decision to float the Egyptian pound in March 2014 marked a pivotal turning point, allowing the pound to fluctuate more freely against foreign currencies according to supply and demand mechanisms. Since the Saudi riyal is pegged to the US dollar, any change in the dollar's value against the pound is directly reflected in the riyal's value.
The impact of the riyal exchange rate on citizens and the economy
Any change in the Saudi riyal's exchange rate, even a slight one, has tangible effects. Locally, a stronger riyal benefits families who rely on remittances from Saudi Arabia, increasing their value in Egyptian pounds and boosting their purchasing power. Conversely, the same increase raises the cost of Hajj and Umrah pilgrimages for Egyptians, as most fees and services are paid in riyals. On a broader economic level, stable riyal inflows contribute to the stability of Egypt's foreign exchange market.
Latest Saudi Riyal exchange rates in Egyptian banks today, Monday
According to the latest updates issued by Egyptian banks in today's trading, Monday, the Saudi Riyal exchange rates for buying and selling are as follows:
- Central Bank of Egypt: 12.48 Egyptian pounds for buying, and 12.52 Egyptian pounds for selling.
- National Bank of Egypt: 12.45 Egyptian pounds for buying, and 12.52 Egyptian pounds for selling.
- Bank of Egypt: 12.45 Egyptian pounds for buying, and 12.52 Egyptian pounds for selling.
- Bank of Alexandria: 12.47 EGP for buying, and 12.51 EGP for selling.
- Commercial International Bank (CIB): 12.46 EGP for buying, and 12.51 EGP for selling.
- Suez Canal Bank: 12.45 Egyptian pounds for buying, and 12.53 Egyptian pounds for selling.
- Faisal Islamic Bank: 12.45 Egyptian pounds for buying, and 12.52 Egyptian pounds for selling.
- Abu Dhabi Islamic Bank: 12.51 Egyptian pounds for buying, and 12.54 Egyptian pounds for selling.
- National Bank of Kuwait: 12.39 Egyptian pounds for buying, and 12.67 Egyptian pounds for selling.
- Cairo Bank: 12.45 EGP for buying, and 12.52 EGP for selling.
