Saudi Arabian monetary authority (SAMA) confirmed that the Riyal coin is going to be replacing the paper Riyal note in circulation as of Thursday 9 / 9 / 1439H corresponding to 24 / 5 / 2018. Nevertheless, previous issues of Riyal note will still be useable side by side with the new coin Riyal for now. However, the paper riyal note has yet to be withdrawn gradually according to prefixed time plan.
SAMA stated that it has given the six issue, which had been minted during the reign of the custodian of the two holy mosques King Salman bin Abdulaziz Al Saud a great deal of attention. SAMA said that it resorted to the best standards and newest technology in money-production industry to ensure superior small designs and popularity among traders. As soon as the new sixth issue of coins is announced, SAMA made sure to prepare the infrastructure of its branches around the kingdom by providing the required machines to ensure smooth circulation and recycling of the new coins. This includes machines such as the counting and sorting machine, packaging machine etc. SAMA also urged commercial banks to prepare the needed infrastructure to activate the circulation of the new coins by providing ultra-speed inspection and counting machines in its branches and deposit machine that enables clients to deposit their coins directly in the same way they do with paper riyal.
SAMA stressed that coins are integral part of the national currency, which must be used side by side to the paper note riyal and any refusal to the trading of coins would expose to penalties set by the relevant regulations and laws. Not to mention that replacing the paper riyal with the coin has many positive effects on the macro- economy and the individuals as well.
The continual use of riyal paper led to the unpopularity of the coin riyal and its smaller categories that consequently caused shops owners to lose interest in supplying coins. This participate to the appearance of alternative goods to replace coins e.g., gum, tissue, and water. The fact that contributes to more negative practices associate with the rejection of coins. Riyal paper form 49% of the traded cash and because of the fact that riyal paper is over-used by traders for a prolonged period, riyals paper turned to be in a poor shape and condition which doesn't suit the kingdom name nor its powerful economy. This elevated the challenges against the cash trading. Moreover, the average life expectancy of the metal coins estimated at 20 – 25 years compared to 12 -18 months for the paper ones depending on trading circumstances. Not to mention that Riyal coin is easier to recycle, transport and save compared to the paper riyals. In addition, coins enjoyed less health risks because of its material nature. Furthermore, coins will be used for a variety of services and machines in the future along the lines of many advanced countries whom they in spite of the fact that they have advanced monetary technology still dealing with coins widely.
SAMA confirmed that all the sixth issues of coins are available at SAMA and banks branches in the kingdom and in case of difficulty in obtaining coins from banks, a Complaint could be submitted to SAMA consumer protection department website www.samacares.sa or the Toll line 800-125-6666