Saudi Central Bank

The Saudi Central Bank is the central bank of the Kingdom of Saudi Arabia. Its first nucleus was established in 1371 AH, corresponding to 1952 CE, under the name of the Saudi Arabian Monetary Agency, and its current Law was later issued by Royal Decree No. (M/36), dated 11/4/1442 AH. [1][2]

The Bank formulates and manages monetary policy and selects its tools and procedures, and it is linked directly to the King while retaining financial and administrative independence. [1]

Its objectives centre on maintaining monetary stability, supporting the stability of the financial sector and reinforcing confidence in it, and supporting economic growth. [1]

The Saudi Arabian Monetary Agency was established in 1371 AH, corresponding to 1952 CE, and from then on managed monetary policy and reserves and supervised the most important institutions of the financial sector. [1]

In 1379 AH, the Saudi Currency Law was issued by Royal Decree No. (6), dated 1379/07/01 AH; it is the statutory basis for issuing currency in the Kingdom and remains in force. [4]

The Saudi Central Bank Law was issued by Royal Decree No. (M/36), dated 11/4/1442 AH, after the Council of Ministers approved it on 9 Rabi' al-Akhir 1442 AH, corresponding to 24 November 2020 CE. [1][2]

The Law changed the name of the Saudi Arabian Monetary Agency to the Saudi Central Bank and linked the Bank directly to the King, while it continued to enjoy financial and administrative independence; it also provided that the Bank succeeds the Agency in all its rights and obligations. [1]

The Bank retained the abbreviation SAMA for its historical significance and its standing domestically and internationally, while banknotes and coins bearing the name of the Saudi Arabian Monetary Agency continue to retain legal tender status and their discharging power. [1]

By Council of Ministers Resolution No. (412), dated 28/07/1443 AH, the Law was amended so that the Governor has two full-time Vice Governors assisting him and serving as members of the Board of Directors. [2]

The Law set out the Bank's objectives as maintaining monetary stability, supporting the stability of the financial sector and reinforcing confidence in it, and supporting economic growth. [1]

The Bank is responsible for formulating and managing monetary policy and selecting its tools and procedures, and the Law established a framework for the governance of its work and decisions. [1] Its responsibility in the financial sector complements that of other market bodies such as the Capital Market Authority.

H.E. Dr Ahmed bin Abdulkarim Al-Kholifey served as Governor of the Saudi Central Bank when the Law was issued in 2020 CE. [1] By Royal Order No. (A/272), dated 11/7/1444 AH, corresponding to 2 February 2023 CE, H.E. Mr Ayman bin Mohammed bin Saud Al-Sayari was appointed Governor of the Saudi Central Bank at the rank of minister, succeeding Dr Fahd bin Abdullah Al-Mubarak. [3]

On 24 Ramadan 1436 AH, corresponding to 11 July 2015 CE, the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud reviewed the new banknote designs and the second issue of Saudi coins, which featured images of the expansions of the Grand Mosque in Makkah and the Prophet's Mosque in Madinah, landmarks of the Saudi renaissance and the most important historic sites of the Saudi state, and carried the latest security features. [9]

On 13 Ramadan 1442 AH, corresponding to 25 April 2021 CE, the Bank issued and put into circulation the SAR 200 banknote, marking five years since the launch of Saudi Vision 2030. [4]

On 8 Rajab 1442 AH, corresponding to 20 February 2021 CE, the Saudi Central Bank launched the Sarie instant payment system, among its initiatives to upgrade the national payments system and develop its infrastructure to achieve financial inclusion. [5]

On 1 Rajab 1444 AH, corresponding to 23 January 2023 CE, the Bank was continuing its central bank digital currency (CBDC) testing project in cooperation with banks and fintech companies, through a phase examining use cases of the central bank digital currency designated for financial institutions domestically. [7]

On 6 Jumada al-Ula 1445 AH, corresponding to 20 November 2023 CE, the Saudi Central Bank and the Chinese Central Bank signed a three-year bilateral currency swap agreement worth up to 50 billion Chinese yuan. [6]

The Saudi Central Bank (SAMA) issued the Financial Stability Report for 2023 CE, which noted that the Saudi economy grew during 2022 CE despite global economic challenges, supported by the soundness of the financial system and the strength of growth in banking assets and credit. [8]

Q: What is the Saudi Central Bank? A: It is the central bank of the Kingdom of Saudi Arabia; its first nucleus was established in 1371 AH, corresponding to 1952 CE, under the name of the Saudi Arabian Monetary Agency, and its Law was later issued by Royal Decree No. (M/36). [1][2]

Q: When was the name of the Saudi Arabian Monetary Agency changed to the Saudi Central Bank? A: Under the Saudi Central Bank Law issued by Royal Decree No. (M/36), dated 11/4/1442 AH, after the Council of Ministers approved it on 24 November 2020 CE. [1][2]

Q: What are the objectives of the Saudi Central Bank? A: Maintaining monetary stability, supporting the stability of the financial sector and reinforcing confidence in it, and supporting economic growth. [1]

Q: To whom is the Saudi Central Bank linked? A: It is linked directly to the King, while retaining financial and administrative independence. [1]

Q: What are the Bank's most prominent payment initiatives? A: It launched the Sarie instant payment system on 20 February 2021, it is continuing its central bank digital currency testing project, and it signed a currency swap agreement with the Chinese Central Bank on 20 November 2023. [5][7][6]