RIYADH, 29 December — Saudi banks, which have announced the transfer of all deposits and loans in European currencies into euro accounts after Dec. 31, have urged their customers to follow the same step. The local banks have already closed down all accounts with zero balances in any of the European currencies before the formal launch of this single European currency.
All financial dealings and transactions after Dec. 31 will be settled by euro and not by any other European currency, the banks said in reply to a question as to how the financial institutions of the Kingdom will respond to the launch of euro on Jan. 1.
Saudi Arabian Monetary Agency (SAMA) has made all preparations to deal with the changeover.
The local banks have also announced that no remittance abroad will be accepted in any European currency other than euro after its formal launch. The euro notes, coins and bank drafts and checks will be in circulation from Jan. 1 among the financial institutions of the 12 European countries and their corresponding foreign banks.
Those traveling to Europe from Saudi Arabia will have to exchange their currencies in euro to facilitate their business transactions and movement.
A euro is likely to be traded at SR3.562 in the money market.
According to the local banks, the introduction of euro notes and coins should make no difference as the currency was launched on foreign exchanges three years ago.
