LOGIN or JOIN
information for global expats



Foreign Exchange for Expats in Saudi Arabia

Submitted: August 2014

The official currency in Saudi Arabia is the Saudi Riyal (SAR). The Saudi Arabian Monetary Agency (SAMA) is responsible for monetary policy.

There are no restrictions as to the holding of foreign currency in Saudi Arabia, and foreign currency accounts are widely available at Saudi banks.

 

Monetary policy

The Saudi Riyal is pegged to the US dollar, at a rate of 3.75 Riyals per US dollar. The fixed exchange rate has been in place since 1986.

As the SAMA is exclusively focused on maintaining the USD/SAR exchange rate, there is no inflation targeting in Saudi Arabia. Consequently, the inflation rate may be allowed to be quite volatile, depending on the US dollar’s position on the global markets.

Since the 2008 crash, central banks around the world have been keeping interest rates at very low levels, which is ultra-loose monetary policy. As interest rates tend to be below Saudi Arabia’s inflation rate, this is bad for savers. Should the world’s central banks revert to tighter monetary policy, Saudi Arabia should follow.

 

Implications for expats

As Saudi Arabia strictly follows a fixed exchange rate versus the US dollar, expats coming to Saudi Arabia have the same foreign currency exposure as expats coming to the US.

Consequently, US expats in Saudi Arabia are not exposed to any exchange rate fluctuations. They just have to exchange their US dollars for Saudi Riyals to pay their bills in Saudi Arabia.

 

Contribute

We value input from our readers. If you spot an error on this page or have any suggestions, please let us know.

 

Moving to Saudi Arabia

If you are considering moving to Saudi Arabia or are soon to depart, you can find helpful information and advice in the Expat Briefing dedicated Saudi Arabia section including; details of immigration and visas, Saudi Arabian forums, Saudi Arabian event listings and service providers in Saudi Arabia.

picture1 Read More

Living in Saudi Arabia

From your safety to shoppingliving in Saudi Arabia can yield great benefits as well as occasional drawbacks.  Find your feet and stay abreast of the latest developments affecting expats in Saudi Arabia with relevant news and up-to-date information.

picture1 Read More

Working in Saudi Arabia

Working in Saudi Arabia can be rewarding as well as stressful, if you don't plan ahead and fulfill any legal requirements. Find out about visas and passports, owning and operating a company in Saudi Arabia, and general Saudi Arabian culture of the labour market.

picture1 Read More


 
 
 
 

Information

About | Useful Links | Global Media Partners | Media | Advertising And Sales | Banners And Widgets | Glossary | RSS | Privacy & Cookies | Terms And Conditions | Editorial Policy | Refer To A Friend | Newsletters | Contact | Site Map

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. © Wolters Kluwer TAA Ltd 2017. All rights reserved.

The Expat Briefing brand is owned and operated by Wolters Kluwer TAA Limited.