Currency in Saudi Arabia
The Saudi Riyal is the official currency of Saudi Arabia. The currency abbreviation is SR and the ISO code is SAR.
The currency of Saudi Arabia is divided into Riyal, Qurush and Halala, with Halala and Hallalas being the smallest unit. One Saudi riyal is always equivalent to 20 Qurush or 100 Halalas. For some years now, however, Qurush have hardly been used, as the use of the riyal and halala represents an easier way of dealing with the currency.
Halala are only available in the form of coins. There are coins with the values 5, 10, 25, 50 and 100 halala. There are also banknotes with the values of 1, 5, 10, 20, 50, 100, 200 and 500 riyals.
This means that the largest Saudi riyal banknote has a value of around 133 US dollars. The ruler of Saudi Arabia is always on the banknotes of the riyal. There are also various symbols in the background, such as buildings from Riyadh – the capital of Saudi Arabia.
History of the currency of Saudi Arabia
The Saudi riyal was first introduced with the establishment of the state of Saudi Arabia in 1932. Before that, Saudi Arabia was the kingdom of Hejaz, which also had its own currency and laid the foundation for the Saudi riyal.
Until 1986 the Saudi Arabian currency was a completely independent currency with its own exchange rate, which was not linked to any other currency.
In 1986, however, the currency was linked to the IMF’s special drawing rights for the first time. The Special Drawing Right is an artificial currency that regulates the liquidity of the global community and is based on the strongest and most important currencies.
In 2003, however, the Saudi riyal was pegged to the US dollar for the first time. The Saudi riyal is firmly tied to this and is traded at the exchange rate of one dollar to 3.75 Saudi riyal. This is to guarantee the security of the currency.
Since then, the currency of Saudi Arabia has grown steadily and steadily into an increasingly stronger currency.
For some years now, however, a common currency for the Gulf states, including Saudi Arabia, has been considered. Should this be introduced, the Saudi riyal would also disappear.
Exchange
If a trip to Saudi Arabia is imminent, it is best to exchange the euro in Saudi Arabia. The exchange rate on site is usually much more attractive than in Germany.
The exchange rate is usually the cheapest if money is withdrawn from an ATM with a credit card, in the local currency Saudi Riyal.
However, it should be checked beforehand whether your own bank charges high fees for a foreign assignment or currency exchange.
