The Saudi riyal's exchange rate against the Egyptian pound saw slight fluctuations at the start of trading on Tuesday morning in Egyptian public and private banks, amid close monitoring by both investors and citizens. This fluctuation reflects supply and demand dynamics in the banking market and comes within an economic context of relative exchange rate stability following a period of volatility.
Historical background and importance of the economic relationship between Egypt and Saudi Arabia
The relationship between the Saudi riyal and the Egyptian pound is of strategic importance to both countries, underpinned by deep economic and trade ties. Saudi Arabia is one of Egypt's largest trading partners and a major source of foreign direct investment. Furthermore, the Kingdom hosts the largest Egyptian expatriate community, whose remittances play a vital role in supporting Egypt's foreign currency reserves. For this reason, the riyal-pound exchange rate remains a sensitive indicator closely monitored by millions of Egyptians, whether they work in the Kingdom or have their families in Egypt, as well as by importers and exporters.
The impact of monetary policies and exchange rate liberalization
The Egyptian economy has undergone significant structural reforms recently, most notably the Central Bank of Egypt's decision to fully liberalize the exchange rate of the Egyptian pound. This decision, aimed at eliminating the parallel market and unifying the exchange rate, has allowed the pound's value to be determined by supply and demand mechanisms in official banks. As a result, currency exchange rates, including the Saudi riyal, now more accurately reflect the economic situation, increasing market transparency and boosting investor confidence. The current exchange rate stability is also attributed to recent inflows of foreign investment, which have strengthened the pound.
List of Saudi Riyal exchange rates in major Egyptian banks today
The exchange rates for the Saudi Riyal on Tuesday were as follows:
- Central Bank of Egypt: 12.46 Egyptian pounds for buying, and 12.49 Egyptian pounds for selling.
- National Bank of Egypt: 12.42 Egyptian pounds for buying, and 12.49 Egyptian pounds for selling.
- Bank of Egypt: 12.42 Egyptian pounds for buying, and 12.49 Egyptian pounds for selling.
- Bank of Alexandria: 12.45 EGP for buying, and 12.49 EGP for selling.
- Suez Canal Bank: 12.40 Egyptian pounds for buying, and 12.49 Egyptian pounds for selling.
- Commercial International Bank (CIB): 12.44 EGP for buying, and 12.49 EGP for selling.
- Faisal Islamic Bank: 12.41 Egyptian pounds for buying, and 12.48 Egyptian pounds for selling.
- Abu Dhabi Islamic Bank: 12.47 Egyptian pounds for buying, and 12.50 Egyptian pounds for selling.
- National Bank of Kuwait: 12.32 Egyptian pounds for buying, and 12.59 Egyptian pounds for selling.
- Cairo Bank: 12.42 EGP for buying, and 12.49 EGP for selling.
The local and regional impact of the exchange rate
The impact of the riyal's exchange rate extends beyond financial transfers and investments to other vital sectors. The Hajj and Umrah seasons are among the most significant periods of increased demand for the Saudi riyal in Egypt. The exchange rate directly affects the cost of Hajj and Umrah pilgrimages for millions of Egyptians, making it a constant point of concern. On the commercial front, the rate impacts the cost of Egyptian imports from Saudi Arabia, as well as the competitiveness of Egyptian exports to the Saudi market.
