Saudi Arabian Monetary Agency (SAMA) announced the gradual replacement of Riyal notes with coins in the country.
The agency said that they will be slowly withdrawing Riyal notes until they are no longer in circulation.
Authorities at SAMA said the move will be done for several reasons, including ease of recycling of coins compared to notes, longer life expectancy of coins, and greater resilience to counterfeiting, reported media company Xinhua, citing reports from local news site Sabq.
“The existence of the paper riyal in circulation caused the metal to not sell and its rejection by traders, which in turn led to the lack of care of the owners of shops to provide coins,” SAMA said in Arabic.
“The average life expectancy of a coin is estimated from 20-25 years, compared to the life expectancy of the paper currency, which is estimated between 12 months and 18 months depending on the conditions of circulation,” the agency added.
The replacement of notes with coins is in line with the Saudi government’s plan to promote business efficiency geared towards the country’s economic growth.
Measures taken by SAMA for the gradual replacement of Riyal notes with coins includes allocation of sorting and counting machines for easier money dealings.
