The Saudi Arabian Monetary Agency (SAMA), the central bank of Saudi Arabia, was established in 1952. SAMA has played an essential role in the consolidation and development of the Saudi financial system. At the time SAMA was formed, the Kingdom did not have a monetary system exclusively its own. Back then there were no Saudi banks and foreign currency circulated along with silver Saudi coins. It became SAMA’s responsibility to develop both a Saudi currency and a national banking system.
Initially, SAMA focused on shaping banking regulations, established the banking business and created a fully convertible riyal. From 1973 to 1982, SAMA worked to contain inflationary pressures, expanded the banking system and managed foreign exchange reserves. Since the mid-1980s, SAMA’s priority has been to introduce financial market reforms.
Today, SAMA has several functions and responsibilities including:
• Issuing national currency.
• Acting as a banker to the government.
• Supervising Saudi commercial banks.
• Managing the Kingdom’s foreign exchange reserves.
• Conducting monetary policy for promoting price and exchange rate stability.
• Promoting the growth and ensuring the soundness of the Kingdom’s financial system.
SAMA’s website at www.sama.gov.sa/indexe.htm features news, publications, statistics, and other information about the Saudi banking system, national finances and the riyal.
