SAMA changes name to ‘Saudi Central Bank’

Saudi Arabia’s Cabinet approved on Tuesday the Saudi central bank law and changing the name of the Saudi Arabian Monetary Authority (SAMA) to the ‘Saudi Central Bank’.

The Saudi Central Bank will be linked directly to the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al Saud, while enjoying its financial and administrative independence, in line with the global practices of central banks, according to SAMA statement.

The law included a provision requiring that the Saudi Central Bank will replace SAMA in all its rights and obligations.

The law determines the central bank’s objectives through:
 

1- Maintaining monetary stability.

2- Supporting the financial sector stability and enhancing confidence in it.

3- Supporting the economic growth.

The central bank is responsible for setting and managing monetary policy, choosing its tools and procedures, in addition to clarifying the bank’s relationship with the government and relevant international external bodies.

It is also responsible for setting the law as a framework for governing the bank’s business and decisions.

The Saudi Central Bank will retain the acronym "SAMA" for its historical importance and its position locally and internationally.

In addition, banknotes and coins of all denominations bearing the SAMA name will continue to retain statutory circulation and executive power.

The Saudi Central Bank’s governor, Ahmed Alkholifey, said that SAMA has studied during the last period the best international practices in central bank laws and related recommendations, and analyzing them to ensure their consistency with the local environment and the Kingdom's economy.

This resulted in a project to update SAMA law to become the Saudi Central Bank law, aiming to enhance the role of the central bank in its performance, keeping up to date requirements and the rapid economic and financial development across the world, and in line with the Kingdom's vision 2030, he highlighted.

Alkholifey affirmed that the step comes from the wise leadership’s keenness to continue progress, keep abreast of best international practices, and achieve the public good since SAMA’s establishment in 1952.