The Saudi riyal exchange rate against the Egyptian pound remained relatively stable during today's trading, with only slight variations in buying and selling prices among different Egyptian banks. This stability reflects a balance in supply and demand for the Saudi currency in the Egyptian banking market, an indicator closely followed by millions of citizens due to the strong economic and social ties between Egypt and Saudi Arabia.
Historical background and economic context
The relationship between the Saudi riyal and the Egyptian pound is of strategic importance to both countries. Historically, Saudi Arabia has been a major destination for Egyptian workers, resulting in substantial remittances that represent one of Egypt's most important sources of foreign currency. Following the Central Bank of Egypt's decision in March 2014 to fully float the Egyptian pound, the exchange rate became more flexible and influenced by genuine market mechanisms, ending a long period of dual exchange rates (official and parallel) and restoring balance to the banking sector.
The importance of the riyal's exchange rate to the citizen and the economy
The exchange rate of the Saudi riyal directly impacts broad segments of Egyptian society. Millions of Egyptian families rely on remittances from their relatives working in Saudi Arabia, and any fluctuation in the exchange rate affects the purchasing power of these remittances. The rate also plays a pivotal role in determining the cost of Hajj and Umrah pilgrimages, which see a large influx of Egyptians annually. On a broader economic level, the exchange rate affects the volume of trade between the two countries, as Saudi Arabia is a major trading partner for Egypt and one of the largest investors in the Egyptian market across diverse sectors such as real estate, industry, and agriculture.
Saudi Riyal exchange rates in major Egyptian banks today
The exchange rates of the Saudi Riyal against the Egyptian Pound in a number of banks operating in Egypt were as follows:
- The Central Bank of Egypt: The buying price was recorded at 12.73 Egyptian pounds, and the selling price at 12.76 Egyptian pounds.
- National Bank of Egypt: The buying price was recorded at 12.67 Egyptian pounds, and the selling price at 12.74 Egyptian pounds.
- Bank of Egypt: The buying price was recorded at 12.67 Egyptian pounds, and the selling price at 12.74 Egyptian pounds.
- Bank of Alexandria: The buying price was recorded at 12.70 Egyptian pounds, and the selling price at 12.74 Egyptian pounds.
- Commercial International Bank (CIB): The purchase price was recorded at 12.70 Egyptian pounds, and the selling price at 12.75 Egyptian pounds.
- Faisal Islamic Bank: The purchase price was recorded at 12.67 pounds, and the selling price at 12.76 pounds.
- Abu Dhabi Islamic Bank: The buying price was recorded at 12.74 pounds, and the selling price at 12.77 pounds.
- National Bank of Kuwait: The buying price was recorded at 12.62 pounds, and the selling price at 12.90 pounds.
- Qatar National Bank (QNB): The buying price was recorded at 12.66 Egyptian pounds, and the selling price at 12.77 Egyptian pounds.
- Cairo Bank: The buying price was recorded at 12.68 Egyptian pounds, and the selling price at 12.75 Egyptian pounds.
This slight variation reflects the competition between banks to attract customers and provide liquidity in Saudi currency, and the exchange rate is expected to remain stable in the short term, supported by foreign investment flows and remittances from Egyptians working abroad.
