The Saudi riyal exchange rate against the Egyptian pound remained remarkably stable at the start of trading today in Egyptian banks, continuing the stability that has characterized exchange rates recently. This stability follows recent economic decisions by the Central Bank of Egypt aimed at unifying the exchange rate and eliminating the parallel market, which has positively impacted the stability of major foreign currencies, including the Saudi riyal.
Background and importance of the Saudi Riyal exchange rate in Egypt
Monitoring the Saudi riyal exchange rate is of particular importance in Egypt due to the close economic and social ties between the two countries. Saudi Arabia hosts the largest Egyptian expatriate community, and remittances from Egyptians working in the Kingdom are a major source of hard currency for the Egyptian economy. Therefore, any change in the exchange rate directly impacts millions of Egyptian families who rely on these remittances. Furthermore, a stable exchange rate provides certainty for importers and exporters dealing with the Saudi market, and it also directly affects the costs of Hajj and Umrah pilgrimages for Egyptian citizens.
The impact of monetary policies on exchange rate stability
The current stability of the Saudi riyal exchange rate against the Egyptian pound is largely due to the Central Bank of Egypt's decision in March 2024 to fully float the pound, allowing it to trade according to market forces of supply and demand. This decision, accompanied by a significant interest rate hike, attracted substantial foreign currency inflows and boosted investor confidence, effectively eliminating the black market for currency and providing dollar liquidity to banks. Consequently, the exchange rates of major currencies, including the Saudi riyal, which was pegged to the US dollar, stabilized at levels that reflected the true value of the pound.
Saudi Riyal exchange rates in major Egyptian banks today
Below are the exchange rates of the Saudi Riyal against the Egyptian Pound in a number of major banks operating in Egypt:
- The Central Bank of Egypt: The buying price was recorded at 12.75 Egyptian pounds, and the selling price at 12.79 Egyptian pounds.
- National Bank of Egypt: The buying price remained stable at 12.71 Egyptian pounds, and the selling price at 12.78 Egyptian pounds.
- Bank of Egypt: The buying price was recorded at 12.71 Egyptian pounds, and the selling price at 12.78 Egyptian pounds.
- Bank of Alexandria: The buying price was 12.74 pounds, and the selling price was 12.78 pounds.
- Commercial International Bank (CIB): The buying price was recorded at 12.74 Egyptian pounds, and the selling price at 12.79 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was 12.71 pounds, and the selling price was 12.78 pounds.
- Suez Canal Bank: The buying price remained stable at 12.71 Egyptian pounds, and the selling price at 12.80 Egyptian pounds.
- National Bank of Kuwait: The buying price was recorded at 12.62 pounds, and the selling price at 12.91 pounds.
- Qatar National Bank (QNB): The buying price remained stable at 12.67 Egyptian pounds, and the selling price at 12.78 Egyptian pounds.
- HSBC Bank: The buying price was recorded at 12.75 pounds, and the selling price at 12.79 pounds.
This relative stability in the exchange rate is expected to continue in the short term, supported by current monetary policies and the availability of foreign currency, sending a reassuring message to markets and traders.
