No. 30/4/1/2575
Date: 18 Dhu al‑Hijjah 1376 AH
By the grace of Almighty God,
We, Saud bin Abdulaziz Al Saud, King of the Kingdom of Saudi Arabia,
After reviewing paragraph (Waw) of Article Four of the Charter of the Saudi Arabian Monetary Agency (SAMA), No. 30/4/1/1047 dated 25 Rajab 1371 AH,
And after reviewing the Council of Ministers’ Resolution No. 121 dated 6/12/1376 AH,
And based on what has been presented to us by the Prime Minister, Minister of Finance and National Economy,
We hereby decree the following:
Article One
The monetary unit of Saudi Arabia shall be the Saudi Dinar, symbolized as (د س).
The Saudi dinar is divided into ten riyals, symbolized as (ر س).
The riyal is divided into ten Saudi qirsh, symbolized as (ق س).
The qirsh is divided into ten Saudi fulus, symbolized as (ف س).
Article Two
The value of the Saudi dinar shall be equivalent to 2.36979 grams of fine gold.
This value shall be known as the par value.
Article Three
The minting, printing, and issuance of Saudi currency is an exclusive privilege of the Saudi Arabian Monetary Agency (SAMA).
No other entity may exercise this right.
Anyone who violates or attempts to violate this article shall be subject to the penalty stipulated in paragraph (A) of Article Eighteen of this Law.
Article Four
The Board of Directors of SAMA shall determine, based on the proposal of the Minister of Finance and with the approval of the Council of Ministers, and in accordance with this Law:
A — The categories of paper and metallic currency:
- Authorized for issuance and circulation
- Their forms, designs, engravings, colors, quantities, dimensions, contents, fineness, weights, sizes, and all other specifications and costs
- The secure location for storing printing plates, dies, and signature specimens of authorized signatories
- Anti‑counterfeiting measures
- The place and time of printing or minting
- The permissible tolerance in fineness for coins, provided that the tolerance for silver coins does not exceed three per thousand
B — The selection of first‑class banks in which the foreign currency reserves forming part of the currency cover shall be deposited.
Article Five
The Board of Directors of SAMA, with the approval of the Minister of Finance and in accordance with this Law, shall determine:
A —
- The categories of paper and metallic currency that must be replaced or withdrawn from circulation due to failure to meet the conditions of fitness for circulation,
and the method of disposal thereof,
and the loss of their legal tender status after a grace period not exceeding three months and not less than one week if urgent withdrawal is required for public interest,
subject to paragraphs (B) and (C) of this Article.
B —
- The conditions under which worn currency may be exchanged, provided that no compensation is paid for banknotes that have lost their features or more than two‑fifths of their area, or their serial numbers, or the two required signatures under Article Ten of this Law; nor for coins that have lost their features, or have been cut, filed, pierced, chemically washed, deformed, or altered unless it is proven conclusively that the damage resulted from force majeure.
- The seizure and confiscation of counterfeit or forged currency, the method of disposal thereof, and the preparation of a report to be sent to the competent authorities for legal action.
C —
The publication and announcement of Saudi currency in the Official Gazette and by any other appropriate means.
Article Six
SAMA shall maintain a full cover for all currency it issues, equal to its value, provided that:
- Not less than 75% of this cover consists of gold and foreign currencies convertible into gold, or gold and silver together, valued at bullion prices.
- Not more than 25% consists of other foreign currencies approved and valued by SAMA’s Board with the approval of the Minister of Finance.
- This cover may never be reduced under any circumstances.
B —
SAMA may not issue any currency without a full cover kept in secure custody within the Kingdom.
Foreign currency reserves (other than gold and silver) may be kept in first‑class banks.
C —
Gold shall be valued according to Article Two of this Law; silver shall be valued conservatively.
D —
Any increase resulting from revaluation of gold or silver reserves shall be added to SAMA’s special reserve fund and may be used to support and stabilize the currency.
Article Seven
SAMA shall issue paper currency backed by a full cover in accordance with this Law.
Article Eight
Paper currency of the dinar and its multiples and subdivisions issued by SAMA shall have legal tender status and unlimited power of discharge for all public and private debts.
Article Nine
The Saudi riyal and its subdivisions shall have legal tender status and power of discharge for all public and private debts; however:
- No one may be compelled to accept more than 1,000 riyals in one‑riyal notes
- Nor more than 10 riyals in fractional currency
Except SAMA and its branches, which shall accept any amount for the convenience of the public.
Article Ten
Paper currency shall bear the signatures of the Minister of Finance and the Governor of SAMA.
Article Eleven
Saudi gold sovereigns shall be withdrawn from circulation within six months from the publication of this Law.
Holders shall deliver them to SAMA in exchange for four Saudi dinars per sovereign.
After the deadline, the sovereign loses legal tender status and becomes a commodity that SAMA may purchase at bullion price.
All sovereigns received shall be added to the currency cover.
Article Twelve
All obligations contracted in Saudi sovereigns before the issuance of this Law shall be settled at four Saudi dinars per sovereign.
Article Thirteen
SAMA shall maintain a register detailing all metallic and paper currency held in its vaults, issued currency, and the corresponding full cover.
At the end of each year, it shall publish an audited annual report including the balance sheet and profit‑and‑loss account.
Article Fifteen
A —
Pilgrims’ receipts shall be subject to all provisions of this Law concerning paper currency until withdrawn from circulation.
B —
SAMA shall withdraw pilgrims’ receipts gradually and replace them with the new currency, paper or silver, at the holder’s request, after issuance of the new currency and within a period determined and announced by SAMA.
Article Sixteen
Each Saudi qirsh issued under Article One of this Law shall equal two old qirsh previously in circulation.
Article Seventeen — Penalties
The following penalties apply to violations of this Law:
A — Counterfeiting or forging currency
Punishable by 3 years to life imprisonment with hard labor, and fines proportional to material and moral damage.
B — Intentional mutilation or alteration of currency
Punishable by 1 to 3 years imprisonment and a fine of 100 to 300 dinars.
C — Returning withdrawn currency into circulation knowingly
Punishable by 1 to 5 years imprisonment and a fine of 100 to 500 dinars.
D — Trading currency at non‑official rates
Punishable by 6 months to 3 years imprisonment and a fine of 50 to 300 dinars.
E — Producing or distributing items resembling currency
Punishable by up to 1 year imprisonment or a fine up to 100 dinars.
F — Printing or using images of currency without authorization
Punishable by up to 6 months imprisonment or a fine up to 50 dinars.
G — Passing counterfeit currency after discovering its defect
Punishable by 1 to 3 years imprisonment or a fine of 100 to 300 dinars.
H — Accomplices
Punished as principals.
I — Attempt
Punished with half the penalty of the completed crime.
J — Exemption
Offenders may be pardoned by Royal Order if they inform authorities before completion of the crime and assist in apprehending others.
K — Confiscation
All counterfeit currency shall be seized and delivered to SAMA without compensation.
Article Eighteen
SAMA’s Board of Directors, with the approval of the Minister of Finance, shall issue instructions in accordance with this Law.
Article Nineteen
The Prime Minister and the Minister of Finance shall implement this Law.
It shall take effect upon ratification with respect to government preparations for implementation, and upon publication with respect to full enforcement by the government and the public.
Peace.