JEDDAH, 20 July 2005 — Exchange rate of Saudi riyal fell 25 percent compared to Egyptian pound within a year, as a result of growing supply of the currency with the arrival of a large number of Saudi tourists and increase in Egypt’s foreign currency reserves.
Ali Al-Amoudi, owner of Al-Amoudi money exchange in Jeddah, said the exchange rate of Egyptian pound had gone up against Saudi riyal due to increased demand from Saudi tourists as well as Egyptian expatriates returning home to spend their holidays.
“The present rate of 1.52 pound against one riyal is the lowest in three years,” Amoudi told Arab News. Two years ago, one riyal was equal to two pounds, he pointed out.
Khaled Al-Rayyes, an Egyptian financial expert, who is currently visiting the Kingdom to perform Umrah, attributed the pound’s excellent performance to an increase in the country’s foreign currency reserves, which grew from $14 billion to $19 billion in 11 months.
He said the increasing number of foreign tourists, especially from Saudi Arabia and other Gulf countries as well as the US and Europe and transfers of Egyptian expatriate workers would strengthen the pound against other currencies including riyal.
