The Saudi riyal saw slight fluctuations against the Egyptian pound at the start of trading on Monday morning in Egyptian public and private banks. This relative stability reflects a state of anticipation in the markets following a series of significant changes to Egypt's exchange rate policy in recent months, aimed at achieving greater exchange rate flexibility and eliminating the parallel market.
Historical background and importance of the riyal/pound exchange rate
The relationship between the Saudi riyal and the Egyptian pound is of particular importance given the deep economic and social ties between the two countries. Saudi Arabia is the primary destination for Egyptian workers abroad, with millions of Egyptians employed there. Consequently, remittances from Egyptians working in Saudi Arabia represent a major source of hard currency for Egypt, making the riyal's exchange rate a direct factor in the income of thousands of Egyptian families and the country's overall balance of payments.
Historically, the Saudi riyal has been pegged to the US dollar, with its exchange rate fixed at 3.75 riyals to one dollar. This means that any change in the Egyptian pound's value against the dollar is directly and immediately reflected in its value against the Saudi riyal. The Egyptian pound has undergone several devaluations since 2016, the most recent being the Central Bank of Egypt's decision in March 2014 to fully float the currency, which led to a significant surge in foreign currency prices, including the riyal.
The economic and social impact of the exchange rate
The impact of the riyal's exchange rate extends beyond financial transfers to other important aspects. It directly affects the cost of Hajj and Umrah pilgrimages for Egyptian citizens, which are journeys of great religious and social significance. The exchange rate also impacts trade between Egypt and Saudi Arabia, as the Kingdom is a strategic trading partner for Egypt. A stable exchange rate contributes to stable prices for imported goods and strengthens investor confidence in both countries.
Saudi Riyal exchange rates in major Egyptian banks today, Monday
The exchange rates for the Saudi Riyal in the Egyptian banking network today are as follows:
- Central Bank of Egypt: 12.50 Egyptian pounds for buying, 12.54 Egyptian pounds for selling.
- National Bank of Egypt: 12.46 Egyptian pounds for buying, 12.54 Egyptian pounds for selling.
- Bank of Egypt: 12.46 EGP for buying, 12.54 EGP for selling.
- Bank of Alexandria: 12.49 EGP for buying, 12.54 EGP for selling.
- Commercial International Bank (CIB): 12.49 EGP for buying, 12.54 EGP for selling.
- Suez Canal Bank: 12.46 EGP for buying, 12.55 EGP for selling.
- Faisal Islamic Bank: 12.46 EGP for buying, 12.53 EGP for selling.
- Abu Dhabi Islamic Bank: 12.51 EGP for buying, 12.54 EGP for selling.
- National Bank of Kuwait: 12.39 Egyptian pounds for buying, 12.67 Egyptian pounds for selling.
- Cairo Bank: 12.47 EGP for buying, 12.54 EGP for selling.
These prices reflect the continuation of the new monetary policy pursued by the Central Bank, which aims to unify the exchange rate and enhance transparency in the currency market, thereby contributing to attracting foreign investments and supporting the long-term stability of the Egyptian economy.
