The Saudi riyal's exchange rate against the Egyptian pound saw notable fluctuations, with a slight downward trend at the close of trading on Tuesday in both Egyptian public and private banks. This daily movement reflects the ongoing dynamics of the Egyptian foreign exchange market, which is of particular importance given the close economic ties between Egypt and Saudi Arabia and its direct impact on millions of Egyptians.
Historical background and economic context
These exchange rate fluctuations follow the Central Bank of Egypt's decision in March 2024 to fully liberalize the Egyptian pound's exchange rate, allowing it to be determined by market supply and demand. This landmark decision, part of a broader package of economic reforms, led to a comprehensive revaluation of the pound against a basket of foreign currencies, including the Saudi riyal. The relationship between the two currencies extends beyond mere trading figures; it is intrinsically linked to the volume of remittances from Egyptians working in the Kingdom, which constitute one of Egypt's most important sources of foreign currency. Furthermore, Saudi Arabia is one of Egypt's largest trading partners and investors, making exchange rate stability between the two countries vital for investment flows and bilateral trade.
The importance of the riyal's exchange rate to the citizen and the economy
The impact of the Saudi riyal's exchange rate extends far beyond investors and traders, affecting broad segments of Egyptian society. Every change in the riyal's value directly impacts the purchasing power of remittances sent by the more than two million Egyptians working in the Kingdom to their families. Furthermore, the riyal's value is a key indicator of the costs associated with Hajj and Umrah pilgrimages, which constitute a significant portion of Egyptians' religious and tourism expenditures. On a broader economic level, the exchange rate affects the competitiveness of Egyptian exports to the Saudi market, as well as the cost of imports from the Kingdom, thus impacting the trade balance between the two countries.
List of Saudi Riyal exchange rates in major Egyptian banks today, Tuesday:
- Central Bank of Egypt: 12.51 Egyptian pounds for buying, and 12.55 Egyptian pounds for selling.
- National Bank of Egypt: 12.48 Egyptian pounds for buying, and 12.55 Egyptian pounds for selling.
- Bank of Egypt: 12.48 Egyptian pounds for buying, and 12.55 Egyptian pounds for selling.
- Bank of Alexandria: 12.50 EGP for buying, and 12.54 EGP for selling.
- Suez Canal Bank: 12.48 Egyptian pounds for buying, and 12.56 Egyptian pounds for selling.
- Commercial International Bank (CIB): 12.49 EGP for buying, and 12.54 EGP for selling.
- Faisal Islamic Bank: 12.48 Egyptian pounds for buying, and 12.54 Egyptian pounds for selling.
- Abu Dhabi Islamic Bank: 12.53 Egyptian pounds for buying, and 12.55 Egyptian pounds for selling.
- National Bank of Kuwait: 12.40 Egyptian pounds for buying, and 12.68 Egyptian pounds for selling.
- Cairo Bank: 12.51 EGP for buying, and 12.58 EGP for selling.
Tracking the exchange rate of the riyal against the pound remains essential for millions, as it reflects the pulse of economic relations between the two largest economies in the region and directly affects the lives of individuals and the stability of financial flows to Egypt.
