In a historic step aimed at enhancing the identity of the national currency and embodying the country's culture and heritage, Saudi Arabia's King Salman bin Abdulaziz approved a symbol for the Saudi Riyal on February 20. The symbol bears the name of the national currency, " Riyal," with a design inspired by Arabic calligraphy. This step will enhance the representation of the Saudi Riyal locally, regionally, and internationally, making it suitable for reference to the local currency in all financial and commercial transactions.

The adoption of the Saudi Riyal comes as Riyadh continues to achieve its Vision 2030 economic development plan, reinforcing the importance of the Riyadh financial system.

Ayman Al-Sayyari, Governor of the Saudi Central Bank (SAMA), said: "The decision contributes to strengthening Saudi Arabia's financial identity at the local, regional, and international levels." Al-Sayyari added: "The implementation of the currency symbol will begin immediately, and it will be reflected in financial and commercial transactions and various applications gradually, in coordination with the relevant official authorities."

Al-Sayyari said this initiative would highlight the growing importance of the national currency in the global financial system. He added it aims to encourage pride in national identity and cultural affiliation, highlight the status of the Saudi riyal, enhance confidence in it, and demonstrate Saudi Arabia's position among the major global economies and G20 countries.

The Saudi Riyal's journey

The riyal became Saudi Arabia's official currency in 1952. At that time, its value was based on the gold reserve and the value of the minted currency (the silver riyal).  Since its founding in 1932, Saudi Arabia used a dual currency system consisting of the riyal, the currency of the Hejaz, and the Ottoman currency used in the Sultanate of Nejd. By 1935, the first unified Saudi currency was minted.

The exchange rate of the Saudi currency remained based on the British gold standard until 1959, based on the country's reserves of gold pounds. Since 1986, Riyadh has pegged its currency to the US dollar at 3.75 Saudi riyals to avoid exchange rate fluctuations. This ensures that inflation rates do not rise in the Saudi economy, given that the most important source of revenue is oil sales, which are priced globally in US dollars.

Stability amid global volatility

The Saudi riyal is among the strongest currencies in the world, based on the stability of its exchange rate and the strength of the country's economy. Despite economic fluctuations in the global energy market and fluctuating oil prices, the Saudi currency has remained stable, and inflation rates have not been significantly affected. The Saudi General Authority for Statistics (GASTAT) announced a slowdown in inflation in Riyadh in December 2024, the first time since mid-2024. Inflation reached 1.9 percent last month, compared to 2 percent recorded in November 2024. This is among the lowest inflation rates in the G20 countries.

Last November, Saudi Finance Minister Mohammed Al-Jadaan said: "Inflation in Saudi Arabia is under control despite its continued global rise. We reached 1.7 percent this year, and inflation is expected to remain below 2 percent in the coming years over the medium term."

In his statements, the minister indicated the government's continued support for citizens to mitigate the impact of inflation, citing the extension of the Citizens Account programme and the continued payment of large sums to stabilise fuel prices. Al-Jadaan also said the government is continuing to ensure price stability and ease the economic burden on citizens.

Photo: The Saudi Riyal is now being marketed. (by Adobe).