King approves Saudi Central Bank law and renames SAMA

King approves Saudi Central Bank law and renames SAMA

Saudi Gazette reportRIYADH — The Custodian of the Two Holy Mosques King Salman has approved the Saudi Central Bank Law on Tuesday during a Cabinet session.The new law includes changing the name of the Saudi Arabian Monetary Authority (SAMA) to the Saudi Central Bank, with direct reporting to the King. The Saudi Central Bank will continue to enjoy financial and administrative independence.This approach comes in line with international best practices for central banks. The law also stipulates that the Saudi Central Bank shall replace the Saudi Arabian Monetary Authority in all its rights and obligations.The new law identifies the objectives of the Saudi Central Bank as follows, Maintaining monetary stability, Promoting the stability of, and enhancing confidence in, the financial sector and Supporting economic growth.In addition, the law confirms that the Saudi Central Bank is responsible for setting the monetary policy and choosing its instruments and procedures.It explains the relationship of the Saudi Central Bank with the government as well as relevant international entities.