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A2 Note-WS Lesson 2

The first currency tied to the House of Saud was introduced in 1924 and was called the "qirsh", a copper coin. In 1928, the first silver Saudi riyal coin was introduced. Paper currency was introduced in the 1960s to replace coins that pilgrims had to carry. The Saudi Arabian Monetary Agency (SAMA) was established in 1952 as the central bank and introduced the country's first paper money in 1961. The stability of the riyal was recognized by international organizations in 1978.

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49 views

A2 Note-WS Lesson 2

The first currency tied to the House of Saud was introduced in 1924 and was called the "qirsh", a copper coin. In 1928, the first silver Saudi riyal coin was introduced. Paper currency was introduced in the 1960s to replace coins that pilgrims had to carry. The Saudi Arabian Monetary Agency (SAMA) was established in 1952 as the central bank and introduced the country's first paper money in 1961. The stability of the riyal was recognized by international organizations in 1978.

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Pakistan International School Jeddah – English Section

(A2) Saudi Studies- Fist Term


lesson 2

Saudi Currency
‫سعودية‬
ُّ ‫العُ ْملة ال‬
History of Saudi Money

The first money tied to the House of Saud was distributed in 1924AD. This
money was different to the present day currency. It was called the «qirsh».
The qirsh was a series of coins, which were made of copper and were
available in the denominations of half-qirsh and a quarter-girsh. The coins
were also inscribed with the world «minted in the Mother of Villages» -
Makkah, and included a monogram of King Abdul Al-Aziz.

A year later, the coins were re-issued with denominations of % and %


qirsh proclaiming Abdul Al-Aziz as the King of Hijaz and the Sultan of
Najd. Then, in 1928AD, a silver coin was put for circulation.
This was the Saudi Riyal and was available in the denomination of one. This coin was then added in 1936AD,
when the % and V4 riyal coins were minted.
However, there was still no paper currency available. All transactions were done in coins
and this was adequate until oil discoveries in the 1930'sAD brought about a change in ideas.

Then, in 1952AD, SAMA is the Central Bank of Saudi Arabia, the functions of the SAMA include issuing
the national currency, the Saudi Riyal, supervising commercial banks, managing foreign exchange
reserves, promoting price and exchange rate stability, and ensuring the growth and soundness of the
financial system, operating a number of cross-bank electronic financial systems such as MADA, SARIE,
.and SADAD
the Saudi Arabian Monetary Agency was formed, to provide central control of finances and to
stabilize the economy.
Within one year, in 1953AD, a gold sovereign was minted which equated to 40 riyals.
This meant that coin exchange involved less actual coins. Then in 1954AD this sovereign was re-issued.
Pilgrims that were visiting the Holy cities of Makkah and Madinah had to carry heavy loads of coins on their
travels. The answer to this came in the shape of the pilgrim receipt.
The first paper currency that was used in the Kingdom was 10 Saudi Riyals. It was a huge success.
The monetary value was printed in several different languages on the receipt, to make it simpler for the many
nationalities that were performing their pilgrimage.

The First Paper Money


By the end of 1960AD, the riyal had become a stable currency. In June 1961AD, the first official paper
currency was introduced. This consisted of 1,5,10, and 50 riyal notes.
Paper currency did not immediately replace the Pilgrim Receipt. This stayed in circulation until it was phased
out in 1963AD. These new riyal notes were also accompanied by a coinage. This coinage was the halalah. The
halalah coin was a denomination of the riyal-100 halalahs was equal to one riyal.

The Stability of the Riyal


The World Bank and the International Monetary Fund (IMF) also recognized the stability of the Riyal
currency and, in 1978AD, Saudi Arabia appointed its first director to their Executive Board.
The World Bank is an international organization that provides loans to countries for development projects. Its
official name is the International Bank for Reconstruction and Development.
The 20 riyal and the 200-riyal notes were introduced in 1999AD to commemorate the 100-year anniversary of
the formation of the kingdom of Saudi Arabia.

‫الكلمة‬ ‫معناها‬
coin ‫عملة معدنية‬
banknote ‫عملة ورقية‬
half ‫ نصف‬/ ‫نُص‬
quarter ‫ربع‬
silver ‫فضة‬
SAMA ‫مؤسسة النقد العربي السعودي‬
IMF ‫صندوف النقد الدولي‬
Activities:

1. What was a girsh?

………………………………………………………………………………………………

2. What inscription could be found on the girsh?

……………………………………………………………………………………………….

3. What coin was introduced in 1928?

……………………………………………………………………….………………………

4. What is SAMA?

……………………………………………………..…………………..……………………..

5. When was the first paper money introduced?

……………………………………………………………………………….……………….

6. What are the functions of the Saudi Arabian Monetary Agency?

……………………………………………………………………………………………………

……………………………………………………………………………………………………

7. Which riyal notes were recently introduced and what occasion did they mark?

…………………………………………………………………………………...……………….

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