Daily Exchange Rates in Saudi Arabia: Comprehensive Report

Today's exchange rates refer to the conversion rate of the Saudi Riyal to foreign currencies at a specific moment in the day. In the Kingdom, the daily exchange rate reflects the commitment of monetary policy to maintain the Riyal's stability against the Dollar since 1986, where the official conversion rate has remained at 3.75 Riyals per Dollar. This means the value of the Riyal remains stable against the Dollar, while the exchange rates of the Riyal against other currencies (such as the Euro, British Pound, and Japanese Yen) fluctuate according to global supply and demand factors. Additionally, the concept of today's exchange rates includes money transfers for individuals and companies between within the Kingdom and abroad, as well as settling payments in international trade. In light of strict monetary policy, the Saudi market prevents any presence of a black market for exchange, as SAMA controls official exchange channels through banks and licensed exchange companies. The daily exchange rate remains a fundamental element in the balance of payments, facilitating trade and investment, and supporting macroeconomic stability.

Daily exchange operations in Saudi Arabia occur through organized official channels that include commercial banks, licensed exchange companies, and some approved digital financial applications. The Saudi Arabian Monetary Authority (SAMA) sets the official rates for converting the Riyal to the Dollar and closely monitors the rates of other foreign currencies. Banks provide currency buying and selling services for individuals and companies, as well as investment tools linked to currencies such as deposit certificates and hedging services against exchange rate risks. All conversion and buying/selling operations are subject to strict oversight to prevent manipulation or illegal speculation. Exchange companies play a complementary role in the market, facilitating currency exchanges and transfers for individuals, especially expatriate workers and expatriates. On the other hand, financial technology (Fintech) has introduced new solutions, such as digital payments and instant transfers, increasing the flexibility and speed of currency trading. With the absence of a black market, investors and consumers rely solely on official channels, enhancing transparency and reducing risks.

Official data for the years 2024-2025 indicates that the exchange rate of the Saudi Riyal against the Dollar will remain stable at 3.75 Riyals per Dollar. The exchange rates of other major currencies have seen slight movements: the Euro exchange rate reached approximately 4.05-4.10 Riyals per Euro, the British Pound reached 4.65 Riyals, while the Japanese Yen declined to an average of 0.025 Riyals per Yen. Saudi foreign currency and gold reserves rose to $520 billion by the end of 2024, supported by significant trade surpluses from oil exports (550 billion Riyals in exports versus 230 billion Riyals in imports). Inflation remained within the range of 2.0%-2.5%, while internal and external financial transfers recorded about 85 billion Riyals in incoming transfers and 68 billion Riyals in outgoing transfers. All these indicators confirm the stability of the local exchange market and its ability to absorb global shocks thanks to strong reserves and prudent monetary policy.

Daily exchange rates directly and indirectly affect various sectors of the Saudi economy. First, the stability of the Riyal against the Dollar reduces currency fluctuation risks for foreign investors and exporting companies, enhancing the attractiveness of the Saudi market. Meanwhile, fluctuations in the exchange rates of other currencies affect import costs, as the prices of imported goods may rise if the Euro or British Pound appreciates against the Riyal. At the same time, the trade surplus and rising financial transfers support the strength of the Riyal and mitigate any inflationary pressures resulting from the global market. The strict monetary policy leads to a stable business environment, encouraging both local and foreign investment, and reducing the need for currency risk hedging. Additionally, the abundance of foreign currency contributes to financing major projects and supporting economic diversification plans.

Several factors determine the movement of daily exchange rates in Saudi Arabia, the most important of which are: the monetary policy of the Saudi Arabian Monetary Authority, the level of foreign reserves, global oil prices, inflation rates, and financial flows to and from the Kingdom. Global economic conditions (such as decisions from the US Federal Reserve or movements in European and Asian markets) also play a role in determining the value of other currencies against the Riyal. Increased demand for foreign currencies during the Hajj, Umrah, and tourism seasons raises the volume of currency trading. Additionally, external financial transfers from expatriate workers and Saudi investments abroad affect the demand and supply in the daily exchange market. Conversely, the stability of the local economy and the abundance of hard currencies limit any sharp fluctuations in prices.

The commercial banking sector and licensed exchange companies form the backbone of the daily exchange market in Saudi Arabia. Banks provide currency exchange services for individuals and companies, execute international financial transfers, and offer risk management solutions related to currency fluctuations. These institutions are subject to strict oversight from SAMA, which requires them to disclose exchange rates and follow transparent pricing policies. Exchange companies meet the needs of individuals, especially in transferring money for expatriates, and often offer competitive rates and quick services. In recent years, there has been growth in fintech solutions, with banks launching digital applications that display live exchange rates and enable instant transfers. The competition between banks and exchange companies benefits the customer in terms of speed, transparency, and reduced costs.

The Saudi market has witnessed significant development in the fintech sector, especially in currency exchange and financial transfer services. Saudi banks have launched advanced banking applications that allow customers to monitor live exchange rates, transfer money internationally at the click of a button, and manage their accounts flexibly. Licensed electronic payment companies have emerged, and some global platforms (such as Western Union and MoneyGram) are integrating with local banks. The Saudi-Emirati "Abar" project represents a pioneering experiment in a joint digital currency for settling payments between the two countries and could potentially serve as an alternative for some traditional cash transactions. Although cryptocurrencies are not officially recognized, there is increasing interest in developing the regulatory environment to accommodate financial innovation, ensuring user protection and enhancing transparency.

The Saudi monetary system enjoys a high level of stability, supported by the policy of pegging the Riyal to the Dollar and substantial foreign reserves. The real exchange rate index of the Riyal has remained stable in recent years, and Saudi Arabia has maintained strong global credit ratings. Reports from SAMA or indicators from the banking sector have not shown any price pressures on the Riyal, which is linked to trade surpluses and foreign capital flows. Rising oil prices have enhanced the Kingdom's ability to absorb any external shocks in the exchange market. The flexible monetary policy and careful monitoring of global interest rates have contributed to the stability of the Riyal's price and local interest rates, boosting investor confidence in the financial environment.

Daily exchange rates play a pivotal role in financing Saudi exports and imports. Thanks to the stability of the Riyal against the Dollar, it facilitates financial planning for exporters and importers without worrying about sharp fluctuations. Export companies (especially in oil) benefit from global pricing in Dollars, ensuring a steady inflow of foreign liquidity into the country. Conversely, import costs may be affected by changes in the exchange rates of other currencies (such as the Euro or Yen), which reflects on the prices of imported goods and services. The balance between trade surplus and foreign currency reserves contributes to supporting monetary stability and providing the necessary financing for business activities, while reducing currency risks in international transactions.

Competition in the Saudi exchange sector is characterized by strong financial institutions that include major local banks (such as Al-Rajhi, Al-Ahli, Riyadh, and SABB) and licensed exchange companies spread across all regions. These entities provide currency exchange and transfer services for individuals and companies, with variations in profit margins and execution speed. Global transfer platforms also provide an additional alternative for money transfers. Competition focuses on offering competitive exchange rates, reducing commissions, and speeding up operations through digital solutions. SAMA regulates competition and prevents manipulation through clear regulatory guidelines. In the future, competition may increase with the development of financial technologies and the entry of global digital payment companies if the market is further liberalized.

The Saudi exchange market has witnessed several significant developments in 2024-2025, most notably the continuation of the joint digital currency project "Abar" with the UAE, regulatory updates from SAMA to enhance transparency, and an increase in the number of licensed exchange offices to meet demand. SAMA has also confirmed the continuation of the policy of pegging the Riyal to the Dollar, which has bolstered investor confidence and attracted new foreign inflows into the financial market. Rising oil prices and the expansion of foreign investments have contributed to increasing reserves and enhancing monetary stability. The evolution of personal financial transfers with the increase in expatriate labor and Saudi investments abroad has led to a rise in transfer volumes, positively reflecting on liquidity. On the other hand, banking applications have seen technical updates to display live exchange rates and facilitate international transfers.

Despite the significant stability characterizing the Saudi exchange market, there are some risks and challenges that need to be monitored. Among the most prominent are sudden changes in global oil prices, which may affect future trade surpluses and reserve strength. Additionally, rising global interest rates may increase borrowing costs and pressure Dollar liquidity during certain periods. Conversely, the strict regulatory environment remains a protective factor against the emergence of a black market or illegal speculation. Digital transformation poses a challenge in keeping up with financial cybercrimes, requiring continuous investment in security and monitoring systems. Finally, geopolitical risks and changes in global monetary policies remain external factors that could indirectly affect foreign currency flows and exchange rates.

Most forecasts indicate that the policy of pegging the Riyal to the Dollar will continue in the near future, supported by financial surpluses and strong reserves. It is unlikely that Saudi Arabia will move towards floating the Riyal or changing the exchange system under current conditions. However, the Monetary Authority continues to develop the regulatory environment and adopt new technological solutions. The market may witness further digital transformation and the development of payment and transfer solutions based on blockchain and government-backed digital currencies. Additionally, the ongoing diversification of the Saudi economy will increase the importance of monitoring daily exchange rates, especially with the expansion of foreign investments and the growth of the tourism and services sector. Transparency and oversight remain essential elements to ensure the stability of the exchange market and protect investors.