Saudi Arabia’s central bank committed to riyal-US dollar peg

Update Saudi Arabia’s central bank committed to riyal-US dollar peg
SAMA said it remained committed to maintaining the exchange rate of SR3.75 to the dollar. (AFP/File)
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Updated 04 May 2020

Saudi Arabia’s central bank committed to riyal-US dollar peg

Saudi Arabia’s central bank committed to riyal-US dollar peg
  • Saudi Arabian Monetary Authority says current exchange rate policy is a major supporter of sustainable economic growth

RIYADH: The Saudi Arabia’s central bank on Monday affirmed its commitment to the exchange rate policy of pegging the Saudi riyal to the US dollar.

The Saudi Arabian Monetary Authority (SAMA) said the currency peg was a strategic option that contributed to the growth of the Kingdom’s economy for more than 30 years.

“SAMA remains committed to maintaining the exchange rate at the official rate of SR3.75 to the dollar as an anchor of monetary and financial stability,” the authority said.

SAMA said its foreign exchange reserves remain sufficient to meet all demands of the national economy, with enough to cover 43 months of imports and 88 percent of broad money. 

The authority added that the current exchange rate policy is a major supporter of sustainable economic growth.