SAR (Saudi Riyal)

DEFINITION of 'SAR (Saudi Riyal)'

The currency abbreviation the Saudi riyal (SAR), the currency for Saudi Arabia. The Saudi riyal is made up of 100 halala or 20 ghirsh, and is often presented with the symbol SR. The Saudi riyal is pegged to the U.S. dollar at about 3.75 SAR.

BREAKING DOWN 'SAR (Saudi Riyal)'

In 1932, Saudi Arabia was created by the combination of the Hejazi Kingdom and the Sultanate of Nejd. After its creation, Saudi Arabia used a bimetallic monetary system based on British gold sovereigns and silver riyals. In 1952, the monetary system was reformed to use a single currency. This currency, the Saudi riyal, was backed by Saudi gold guineas equivalent to the British gold sovereign until 1959, when a system based on fiat money issued by the Saudi Arabian Monetary Agency was created.

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