Saudi Arabian Monetary Law

Royal Decree No. 7 dated 6/7/1379 H

In the Name of Allah, the Most Gracious, the Most Merciful

We, Abdulaziz bin Saud bin Abdulrahman Al Saud, King of the Kingdom of Saudi Arabia,

Having reviewed Articles 19 and 20 of the Council of Ministers System,

Having reviewed Decision No. 77 of 23 Jumada al-Ula,

And having reviewed Article 3 of the Saudi Arabian Monetary Agency System,

And having reviewed the proposal submitted to us by the President of the Council of Ministers, dated 29/6/1379 H, No. 91,

We have ordered the following:

Article One

The unit of currency in Saudi Arabia is the Saudi Riyal, which is divided into twenty Qirsh. The Saudi Riyal is a Saudi silver coin.

Article Two

The value of the Riyal is equivalent to 48.27% of a gram of pure gold, known as the gold parity. The Kingdom of Saudi Arabia shall be one of the parties to international agreements in accordance with their provisions, and the parity shall be amended by Royal Decree.

Article Three

The right to issue and print banknotes is vested exclusively in the Saudi Arabian Monetary Agency. No one may exercise this right.

Article Four

The Saudi Arabian Monetary Agency shall determine, with the approval of the Minister of Finance, the following regarding banknotes, taking into account the provisions of this Law:

The categories of banknotes authorized for circulation.
Their designs, shapes, sizes, weights, denominations, contents, inscriptions, and other specifications.
The location for keeping the printing plates or clichés, and the signatures of the authorized signatories on the banknotes.
The precautions against forgery.
The time and place of printing or issuing the notes.

(2) Foreign currencies deposited in the Saudi Arabian Monetary Agency's reserves (subject to the banks' choice), provided they constitute part of the Kingdom's reserves, shall be invested in foreign financial instruments in accordance with the regulations of the Central Banks.

Article Five

The Saudi Arabian Monetary Agency shall determine, with the approval of the Minister of Finance, the following regarding banknotes, taking into account the provisions of this Law:

The conditions for making them valid for circulation, and if these conditions are not met, their withdrawal or exchange from circulation, with a period not less than one month, taking into account paragraphs (b) and (c) of this Article to ensure the public interest.
The conditions for the availability of consumed banknotes to be exchanged for any banknotes of the same value, provided that the notes have lost their characteristics or have been altered, torn, cut, burned, washed by chemical means, or have lost their characteristics, unless it is proven that this was caused by force majeure. In such cases, the Court has the right to compensation at its discretion.
(c) Seizure and confiscation of counterfeit or forged notes, and the procedure for dealing with them, with a report drawn up and a copy sent to the competent authorities for legal action.
(d) Publishing notice in the Official Gazette about Saudi banknotes by any other appropriate means.

Article Six

All banknotes issued by the Saudi Arabian Monetary Agency must be fully covered by gold and be convertible into gold.
The Saudi Arabian Monetary Agency may not issue currency without full gold reserves kept in a secure vault. However, such gold may be kept in first-class banks outside the Kingdom, in accordance with Article 2 of this Law.
(c) The gold reserve shall be valued at the specified price.
(d) The reserve shall be revalued at the time of using the gold support price, and any resulting increase shall be transferred to the Government.

Article Seven

Banknotes issued by the Saudi Arabian Monetary Agency in the denomination of Riyals, including their fractions and multiples, shall have legal tender status and be valid for the settlement of all debts, public and private, in specified amounts. However, no one shall be compelled to accept Saudi banknotes issued by the Saudi Arabian Monetary Agency or its branches if their value exceeds ten Saudi Riyals, whether for the purpose of paying them to the Public Treasury or exchanging them for other denominations authorized for circulation.

Article Eight

The Saudi Arabian Monetary Agency shall sign the banknotes, with the signature of the Governor of the Saudi Arabian Monetary Agency and the Minister of Finance.

Article Nine

The existing Saudi Gold Coins shall be withdrawn from circulation. Holders of the Saudi Gold Coins may deliver them to the Monetary Agency within two months from the date of publication of this Law. After the expiration of this period, they shall become commodities, and they shall be received in exchange for forty Saudi Halalas.

Article Ten

The Saudi Arabian Monetary Agency shall keep a register recording the details of the issued and withdrawn metallic and paper currency.

Article Eleven

The Saudi Arabian Monetary Agency shall publish in the Official Gazette, during the first two weeks of each month, a statement comparing the amount of issued and minted banknotes with the full gold reserve they represent, as well as the amount of banknotes in circulation. Additionally, it shall publish in the Official Gazette at the end of each year, certified by an independent auditor, a report on the Agency's operations, including the annual balance sheet, profit and loss account, and the status of reserves in the Central Banks.

Article Twelve

The provisions of this Law regarding banknotes withdrawn from circulation apply to the receipts of the previous currency.
The Saudi Arabian Monetary Agency shall gradually withdraw the receipts of the previous currency and exchange them for the corresponding new currency, announcing the period appointed by the Agency for the issuance of the new currency.

Article Thirteen

The Saudi Arabian Monetary Agency shall issue regulations in accordance with this Law, with the approval of the Minister of Finance, covering all matters.

Article Fourteen

This Law is considered repealed, and its provisions are superseded by the previously issued provisions.

Article Fifteen

This Law shall be implemented from the date of its publication by the President of the Council of Ministers and the Minister of National Economy and Finance.

Royal Signature
Saud

Corrected to five words and made five: Royal Decree No. 17 dated 16/9/1379 H