Saudi Arabian Monetary Agency
Encyclopedia
The Saudi Arabian Monetary Agency (SAMA), established in 1952, is the central bank of the Kingdom of Saudi Arabia
.
, a branch of the Netherlands Trading Society acted as a de-facto central bank, keeping the Kingdom's gold reserves and receiving oil revenues on behalf of the Saudi Arabian government. In 1928 it assisted in the establishment of the Saudi Riyal
, a new silver coin commissioned by King Abdulaziz which became the Kingdom's first independent currency. The Saudi Hollandia Bank handed over its responsibilities to the SAMA when it was established and became a model for other foreign banks in the kingdom.
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, Saudi 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.
s, managing foreign exchange reserves, promoting price and exchange rate stability, and ensuring the growth and soundness of the financial system, operating a number of cross-bank electronic financial systems such as (SPAN, Tadawul, SARIE, SADAD and MAQASA).
, who was appointed on February 14, 2009.
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
.
History
Prior to the establishment of the Saudi Monetary Agency, the Saudi Hollandi BankSaudi Hollandi Bank
The Saudi Hollandi Bank is a bank based in Saudi Arabia. It was the first operating bank in the Kingdom of Saudi Arabia and was originally founded in 1926 as a branch of the Netherlands Trading Society.-History:...
, a branch of the Netherlands Trading Society acted as a de-facto central bank, keeping the Kingdom's gold reserves and receiving oil revenues on behalf of the Saudi Arabian government. In 1928 it assisted in the establishment of the Saudi Riyal
Saudi riyal
The Riyal is the currency of Saudi Arabia. It is abbreviated as ر.س or SR . It is subdivided into 100 Halalas . The Saudi Ghirsh is 5 Halalas.-History:...
, a new silver coin commissioned by King Abdulaziz which became the Kingdom's first independent currency. The Saudi Hollandia Bank handed over its responsibilities to the SAMA when it was established and became a model for other foreign banks in the kingdom.
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, Saudi Arabia converted to the Saudi Riyal
Saudi riyal
The Riyal is the currency of Saudi Arabia. It is abbreviated as ر.س or SR . It is subdivided into 100 Halalas . The Saudi Ghirsh is 5 Halalas.-History:...
, in accordance with Article VIII of the Articles of Agreements of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
. 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
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
. From mid 1980s, SAMA’s priorities have been to introduce financial market reforms.
Functions
SAMA is the Central Bank of Saudi Arabia, the functions of the SAMA include issuing the national currency, the Saudi Riyal, supervising commercial bankCommercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s, managing foreign exchange reserves, promoting price and exchange rate stability, and ensuring the growth and soundness of the financial system, operating a number of cross-bank electronic financial systems such as (SPAN, Tadawul, SARIE, SADAD and MAQASA).
Leadership
The governor of SAMA is Dr. Muhammed Al-jasserMuhammed Al-Jasser
His Excellency Dr. Muhammed Sulaiman Al-Jasser is a Saudi finance minister and governor of the Saudi Arabian Monetary Agency ....
, who was appointed on February 14, 2009.
See also
- Capital Market Authority (Saudi Arabia)
- SADAD
- Saudi Payments Network (SPAN)
- Saudi riyalSaudi riyalThe Riyal is the currency of Saudi Arabia. It is abbreviated as ر.س or SR . It is subdivided into 100 Halalas . The Saudi Ghirsh is 5 Halalas.-History:...
- TadawulTadawulSaudi Stock Exchange or Tadawul is the only stock exchange in Saudi Arabia. It is supervised by the Capital Market Authority. The Tadawul All-Share Index reached its highest point at 20,634.86 on 25 February 2006. It lists 144 publicly traded companies...