The Saudi Arabian Monetary Agency (SAMA) regulates the kingdom's money supply. Since June 1986, the Saudi riyal had been informally pegged to the U.S. dollar at SR3.745:US$1. The fixed rate cuts down on revenue volatility, being that a majority of Saudi oil exports are sold to America and denominated in U.S. dollars. Keeping the riyal consistent in its relation to the dollar also helps keep the currency stable, and this, in turn, makes Saudi Arabia a more attractive market for international investment capital. At the same time, the pegged rate provides a stable exchange rate with other GCC countries whose currencies are also generally pegged to the dollar.
|Exchange rates: Saudi Arabia|
|Saudi riyals (SR) per US$1|
|Note: The rate of Saudi currency has been fixed since June 1986.|
|SOURCE: CIA World Factbook 2001 [ONLINE].|