Saudi Arabia: Plans to Replace 1 Riyal Banknote with a 2 Riyal Coin

[Bimat]

Saudi Arabian Monetary Authority is considering a proposal to replace the 1 Riyal banknote with a 2 Riyal coin. More details are awaited.

News source: Banknote news

Aditya

[Jostein]

http://myinforms.com/en-us/a/35138680-sr1-bill-to-be-history/


Would be issued as 2 riyal or 200 halala? Let's see

[Bimat]

http://myinforms.com/en-us/a/35138680-sr1-bill-to-be-history/


Would be issued as 2 riyal or 200 halala? Let's see

Thanks! Since 1 Riyal is a bimetallic, I expect the 2 Riyal to be bimetallic too, with inner and outer pills' material swapped?

Aditya

[Jostein]

Thanks! Since 1 Riyal is a bimetallic, I expect the 2 Riyal to be bimetallic too, with inner and outer pills' material swapped?

Aditya

Hahaha, I hope so. Fingers crossed my friend! 

[Pabitra]

100 Halala has been an infrequently issued coin.
It was first issued as a commem on Centenary of the Kingdom in 1998 and as a bimetallic coin.
The same specifications but new reverse, were used to issue limited quantity of circulation coins in the same year.

In years 2006 and 2008, again circulation coins were issued in rather limited quantities.
As long a currency note of the same denomination was available, reason for it not being popular can be easily imagined.

With the new king on throne for nearly one and a half years, the delay in new coinage is surprising.With the old governor of SAMA given a kick more than a month back, hopefully the things should start moving. The revised designs were approved in July last year. The entire coinage is being  redesigned, as per unconfirmed news. 100 Halala may no longer be bimetallic.

Anyway, with Ramadan starting, new coins may make appearance by Eid ul Fitre ( first week of July).

[Bimat]

Saudi Riyal Coins To Gradually Replace Notes

May 24, 2018

The Saudi Arabian Monetary Agency (SAMA) announced that new riyal coins will replace one riyal notes starting from Thursday, the Saudi Press Agency reported.

It said paper currencies will still be traded alongside the new coins until until all the one riyal notes are gradually phased out across banks, as planned.

SAMA said the coin has been coined under the patronage of King Salman and has received great attention and care, while relying on detailed studies on the world's latest technology in coin industry.

It said the new designs come in small sizes, along with shapes and colors different from the previous coin designs.

The agency had earlier unveiled the new design of coins in different denominations, including the one riyal and the new two riyal coins. The other coins are in the 50-halala, 25-halala, 10-halala and one-halala denominations.

During the launch of the annual release of monetary currency, SAMA said that procedures were in place for handling the coins in all commercial banks across the Kingdom.

SAMA urged all commercial banks to facilitate the circulation of the currency by installing high speed checking machines in their branches and cash centers, and providing machines to accept depositing coins.

It stated that the new riyal coin is an integral part of the national currency that will be traded alongside the note riyal, and that the refusal of circulating coins will expose violators to penalties.

It also noted that the decision to replace the one riyal notes with riyal coins has many positive effects on the Saudi economy.

Adding that the existence of the one riyal notes in circulation affected the selling of riyal coins, and at times led to its rejection by traders.

This resulted in rejecting denominations of the coin, which in turn led shop owners to feel less urged to provide coins. Such widespread negative practices contributed to the rejection of the coin.

It said the number of banknotes traded in the riyal notes category make up 49% from the amount of banknotes in circulation across the country because they do not enter the natural cycle of cashflow, due to being transferred among traders for long periods of time, during which the paper currency becomes severely worn out.

It noted that among the benefits of the decision is that the average coin life expectancy is estimated at twenty to twenty-five years, compared to the life expectancy of paper currency, which is estimated between twelve months and eighteen months, depending on the conditions of circulation.

It also noted that coins are efficient for recycling, and their transfer and preservation remain easier that paper currency.

Source: Eurasia Review

[Pabitra]

Title needs amendment.
1 Riyal coin replaces 1 Riyal note.
2 Riyals is new introduction.

Saudi Arabia is not considering double your money scheme 😄