Relative stability in the Saudi riyal exchange rate against the Egyptian pound today
The Saudi riyal exchange rate against the Egyptian pound remained relatively stable with a slight downward bias at the close of trading on Sunday in Egyptian public and private banks. This movement comes within the context of the daily fluctuations in currency prices since the Central Bank of Egypt's decision to fully liberalize the exchange rate in March 2014, a decision aimed at eliminating the parallel market and unifying the exchange rate according to supply and demand mechanisms.
The economic context of exchange rate movements
Historically, the Egyptian pound's exchange rate has been pegged to major currencies through various mechanisms, but the recent shift towards a fully flexible exchange rate marks a turning point in Egyptian monetary policy. This new system makes the local currency more responsive to global and domestic economic variables, such as foreign investment inflows, tourism and Suez Canal revenues, and remittances from Egyptians working abroad, the largest source of which is Saudi Arabia. Consequently, any change in these factors is directly and immediately reflected in daily exchange rates at banks.
The importance of the Saudi Riyal exchange rate to the Egyptian economy
The Saudi riyal exchange rate holds particular significance in Egypt due to the close economic and social ties between the two countries. The Kingdom hosts millions of Egyptian workers, representing the largest Egyptian expatriate community. Their remittances in Saudi riyals are a crucial source of foreign currency for Egypt, contributing to the balance of payments and providing dollar liquidity to the local market. Therefore, any fluctuation in the exchange rate directly impacts the purchasing power of these remittances when they reach their families in Egypt.
On another front, the exchange rate of the Saudi riyal directly impacts the costs of Hajj and Umrah pilgrimages for millions of Egyptians annually. A stronger riyal means higher travel, accommodation, and service costs in Saudi Arabia, placing an additional burden on pilgrims. Furthermore, the strong trade and investment ties between the two countries make a stable exchange rate crucial for the growth of trade and for encouraging Saudi investment in Egypt.
List of Saudi Riyal exchange rates in major Egyptian banks today, Sunday
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 12.45 Egyptian pounds, and the selling price at 12.49 Egyptian pounds.
- National Bank of Egypt: The buying price was recorded at 12.42 Egyptian pounds, and the selling price at 12.49 Egyptian pounds.
- Bank of Egypt: The buying price was 12.42 Egyptian pounds, and the selling price was 12.50 Egyptian pounds.
- Bank of Alexandria: The buying price was recorded at 12.45 Egyptian pounds, and the selling price at 12.49 Egyptian pounds.
- Commercial International Bank (CIB): The buying price was recorded at 12.44 Egyptian pounds, and the selling price at 12.49 Egyptian pounds.
- Suez Canal Bank: The buying price was 12.43 Egyptian pounds, and the selling price was 12.51 Egyptian pounds.
- Abu Dhabi Islamic Bank: The purchase price was recorded at 12.48 Egyptian pounds, and the selling price at 12.51 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was 12.43 pounds, and the selling price was 12.48 pounds.
