The Saudi riyal saw a slight increase against the Egyptian pound at the close of trading on Sunday in Egyptian banks, continuing to move within new price ranges that stabilized after the Central Bank of Egypt's decision to float the exchange rate in March 2024. This daily fluctuation reflects the dynamics of supply and demand in the market and is closely followed by a large segment of citizens and companies due to the close economic and social ties between Egypt and Saudi Arabia.
Historical background: The decision to liberalize the exchange rate
This fluctuation in the riyal's exchange rate is part of a new economic reality Egypt has been experiencing since the Central Bank's decision on March 6, 2014, to implement a flexible exchange rate system. This landmark decision ended a long period of the pound's near-official peg and aimed to eliminate the parallel currency market and unify the exchange rate, thereby enhancing transparency and attracting foreign investment. Since then, foreign exchange rates, including the Saudi riyal, have been determined by supply and demand mechanisms in the banking market, resulting in daily changes.
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, Saudi Arabia is the primary destination for Egyptian expatriate workers, with millions of Egyptians working there and sending their savings in riyals to their families in Egypt. Consequently, the exchange rate directly impacts the purchasing power of these remittances, which represent a vital source of foreign currency for the country. Second, the riyal is a key currency for Egyptians traveling to perform Hajj and Umrah pilgrimages, as its appreciation significantly affects the overall cost of the trip. Furthermore, the riyal's value is linked to trade between the two countries, as Saudi Arabia is a strategic trading and investment partner for Egypt.
Saudi Riyal exchange rates in major Egyptian banks today, Sunday
Below are the details of the Saudi Riyal exchange rates against the Egyptian Pound in a number of public and private banks at the end of today's trading:
- The Central Bank of Egypt: The buying price was recorded at 12.55 Egyptian pounds, and the selling price at 12.58 Egyptian pounds.
- National Bank of Egypt: The buying price was recorded at 12.51 Egyptian pounds, and the selling price at 12.58 Egyptian pounds.
- Bank of Egypt: The buying price was 12.51 Egyptian pounds, and the selling price was 12.58 Egyptian pounds.
- Bank of Alexandria: The buying price was recorded at 12.54 pounds, and the selling price at 12.58 pounds.
- Suez Canal Bank: The buying price was 12.50 Egyptian pounds, and the selling price was 12.59 Egyptian pounds.
- Commercial International Bank (CIB): The buying price was recorded at 12.53 Egyptian pounds, and the selling price at 12.58 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was 12.52 pounds, and the selling price was 12.58 pounds.
- Abu Dhabi Islamic Bank: The purchase price was recorded at 12.58 Egyptian pounds, and the selling price at 12.61 Egyptian pounds.
- National Bank of Kuwait: The buying price was 12.44 pounds, and the selling price was 12.72 pounds.
- Cairo Bank: The buying price was recorded at 12.52 Egyptian pounds, and the selling price at 12.58 Egyptian pounds.
