The Saudi riyal saw a slight decline against the Egyptian pound at the close of trading on Wednesday in Egyptian public and private banks. This change comes within the context of daily trading activity, reflecting supply and demand mechanisms in the banking market, which have become more flexible following recent economic decisions by the Central Bank of Egypt.
Historical background and economic context of the relationship between the two currencies
The exchange rate of the Saudi riyal against the Egyptian pound is a highly significant economic indicator, given the deep economic and social ties between the Kingdom of Saudi Arabia and the Arab Republic of Egypt. Historically, the exchange rate remained stable for extended periods, but it has undergone considerable fluctuations in recent years, influenced by the economic reforms implemented in the Egyptian economy. Remittances from Egyptians working in the Kingdom, estimated at billions annually, constitute one of Egypt's most important sources of foreign currency, making the stability of this exchange rate vital for millions of Egyptian families.
The most significant turning point was the Central Bank of Egypt's decision in March 2024 to fully float the Egyptian pound, leading to a sharp depreciation against major foreign currencies, including the Saudi riyal. This measure aimed to eliminate the parallel currency market and unify the exchange rate, which explains the daily fluctuations we are currently witnessing as a normal free market behavior.
The importance of the riyal's exchange rate and its local and regional impact
Domestically in Egypt, the exchange rate of the Saudi riyal directly impacts the purchasing power of families who rely on remittances from Saudi Arabia. Every increase in the riyal's value translates to a rise in the value of these remittances in Egyptian pounds, thus supporting living standards. The exchange rate also directly affects the costs of Hajj and Umrah pilgrimages for Egyptian citizens, as these are paid for in Saudi riyals. Regionally, the stable relationship between the two largest Arab economies is a cornerstone of economic stability in the region, and the exchange rate reflects the strength of these trade and investment ties.
Saudi Riyal exchange rates in major Egyptian banks today, Wednesday
Below are the details of the Saudi Riyal exchange rates in a number of Egyptian banks at the end of trading today:
- The Central Bank of Egypt: The buying price was recorded at 12.47 Egyptian pounds, and the selling price at 12.51 Egyptian pounds.
- National Bank of Egypt: The buying price was 12.44 Egyptian pounds, and the selling price was 12.51 Egyptian pounds.
- Bank of Egypt: The buying price was recorded at 12.44 Egyptian pounds, and the selling price at 12.51 Egyptian pounds.
- Bank of Alexandria: The buying price was 12.47 pounds, and the selling price was 12.51 pounds.
- Commercial International Bank (CIB): The buying price was recorded at 12.46 Egyptian pounds, and the selling price at 12.51 Egyptian pounds.
- Suez Canal Bank: The buying price was 12.43 Egyptian pounds, and the selling price was 12.51 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was recorded at 12.43 pounds, and the selling price at 12.51 pounds.
- Abu Dhabi Islamic Bank: The buying price was 12.49 pounds, and the selling price was 12.52 pounds.
