Only one penny cost Egyptian families an additional 79 pounds for every 10,000 riyals transferred! In a shocking development that shook the Egyptian exchange markets, the Saudi riyal recorded a sudden increase in 4 major Egyptian banks during today’s transactions, bringing the selling price to 12.7 pounds for the first time in 6 months. The five major banks agreed on the new price… and there is no going back soonThis means that 2.3 million Egyptians working in Saudi Arabia will face a new economic reality that may completely change their financial accounts.
On Thursday morning, Egyptian families were surprised by the sudden increase When the major banks – Al-Ahly, Misr, Cairo, Alexandria, and Commercial International – announced a uniform increase in their prices. Umm Ahmed, a housewife from Giza who relies on remittances from her son, a worker in Riyadh, recounts her shock: “I was waiting for the monthly transfer to pay the house rent, but the amount today is 70 pounds less than last month.”. Money exchange experts confirm that this seemingly small increase means an annual loss estimated at 790 pounds for every worker who transfers 100,000 riyals annually.
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The rise comes in the context of a continuous improvement in the Saudi economy Driven by the huge Vision 2030 projects and the rise in oil prices to record levels. D. Mohamed Al-Shafi’i, economic analyst at the Bank of Egypt, explains: “The new price reflects the strength of the Saudi economy, but it puts additional pressure on Egyptian families.”. The last time we witnessed a similar rise was in January 2023 when oil rose to $95 per barrel, and the rise continued for three consecutive months before stabilizing.
Egyptian families now face a real challenge in re-planning their budgetsespecially with the approaching end of the year and increasing financial needs. Abu Youssef, the owner of a money exchange office in the center of the country, recounts how his office was crowded with upset customers: “People come and ask if the price will stay like this or come back, and the truth is, no one knows.”. The irony is that there is another group that benefits from the rise, such as Khaled Al-Lawyer, a currency investor, who achieved 15% profits from his correct prediction of the price direction.
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One penny on the surface, but it means a radical change in the budgets of two million Egyptian families. Experts advise affected families to postpone unnecessary transfers and search for the best rates between different banks. The market is now awaiting new economic data from Saudi Arabia that may determine whether this rise is temporary or the beginning of a new upward wave. The question arises: Will the Saudi riyal continue to rise, or is this just a temporary fluctuation? The coming days will bring the answer.
