The Saudi Arabian Monetary Agency (SAMA), established in 1952, is the central bank of the Kingdom of Saudi Arabia.

History

At the time of its establishment, Saudi Arabia did not have a monetary system of its own. Foreign currencies were used as a medium of exchange, along with Saudi silver coins. Saudi bank notes had not yet been issued. Banking was conducted by foreign bank branches. Therefore, the first task of the SAMA was to develop a Saudi currency. The SAMA also paid attention to the need for promoting the growth of a national banking system. In March 1961, Saudia Arabia converted to the Saudi Riyal, in accordance with Article VIII of the Articles of Agreements of the International Monetary Fund. In the 1970s and early 1980s, the SAMA focused on controlling inflation as the economy boomed, expanding the banking system, and managing foreign exchange reserves. From mid 1980s, SAMA�s priorities have been to introduce financial market reforms.

Functions

The functions of the SAMA include issuing the national currency, the Saudi Riyal, acting as a banker to the government, supervising commercial banks, managing foreign exchange reserves, promoting price and exchange rate stability, and ensuring the growth and soundness of the financial system.

SOURCE: Saudi Arabian Monetary Agency