Regulatory Alerts2023-09-18
Urging the Study of Opening Additional Branches for Foreign Currency Buying, Selling, and Trading
The Saudi Central Bank issued Circular No. 45015560 urging exchange centers structured as companies to study opening additional branches in the central areas of the Two Holy Mosques, King Abdulaziz International Airport in Jeddah, and Prince Mohammad bin Abdulaziz International Airport in Medina to facilitate foreign currency buying, selling, and trading for Hajj and Umrah pilgrims. This directive aligns with Vision 2030 financial inclusion objectives and builds upon existing regulations that require prior non-objection for branch expansions. The Bank emphasizes that these additional branches will serve the public interest by enhancing service accessibility and supporting the growing demand for currency exchange services during peak pilgrimage seasons.
Saudi Central Bank
Circular
No.: 45015560 Date: 1445/03/04 AH Attachments: None
Dear Sirs, Peace, mercy and blessings of God be upon you,
Subject: Urging the Study of Opening Additional Branches to Engage in Foreign Currency Buying, Selling, and Trading within the Kingdom.
Based on paragraph (c) of Article Two of the Regulations Governing the Practice of Exchange Business, issued by decision of His Excellency the Minister of Finance No. (4686) dated 1441/11/21 AH, which stipulates that one of the objectives of these regulations is "expanding the scope of exchange business distribution and facilitating its provision to enhance financial inclusion", and paragraph (a) of Article Twenty-Three, which stipulates that "exchange centers must obtain prior non-objection from the Saudi Central Bank before opening one or more branches to practice exchange business, and in this case, the non-objection is limited to exchange centers structured as companies or foreign exchange center branches", and in light of the Saudi Central Bank's supervisory and regulatory role over financial institutions, and continuing its efforts to contribute to achieving the objectives of Saudi Vision 2030 regarding the expansion of Hajj and Umrah services.
Accordingly, the Saudi Central Bank urges exchange centers structured as companies to study opening additional branches to engage in foreign currency buying, selling, and trading within the Kingdom in the central areas of the Two Holy Mosques, King Abdulaziz International Airport in Jeddah, and Prince Mohammad bin Abdulaziz International Airport in Medina, as required by the public interest in serving Hajj and Umrah pilgrims.
Yours sincerely,
Al-Nasser Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision
Distribution Scope: Exchange companies operating in the Kingdom. Fathah / Al-Sahli