Saudi Arabia is a very young country in the Middle East. It is home to holy cities like Mecca and Medina, which is the spiritual centre of Islam. The abundance of oil fields makes it one of the wealthiest countries in the world. Saudi Arabia's official currency is the Saudi Riyal, and its symbol is SAR. The most frequently used bank notes are 1, 5, 10, 20, 50, 100, and 500 Saudi Riyals. Each Riyal is further subdivided into 100 Halala, and the most frequently used denominations are 5, 10, 25, 50, and 100 Halala. Read more about Saudi Riyal and its conversion to INR.
History of Saudi Riyal and Halala
Saudi Arabia was formed by combining the Kingdom of Hejaz and the Sultanate of Nejd in 1932. The new country used the bimetallic monetary system of British gold sovereigns and silver Riyals. However, in 1952, the country moved towards a single currency, the Saudi Riyal, which was backed by Saudi gold guineas. This was in use until 1959 when the Saudi Arabian Monetary Agency (SAMA) created a system based on fiat money.
Although Riyals in the form of coins were in use from 1935, the bank notes were issued as Haj Pilgrim Receipts, which were later replaced with Riyal banknotes in 1961. Each Riyal was divided into 20 ghirsh, which was later replaced with Halala in 1963 by the SAMA. Now each Riyal is divided into 100 Halala.
What exchange rate does Saudi Arabia use?
Saudi Arabia uses a fixed exchange rate system. Its currency is pegged to the US Dollar at 3.75 Riyals. However, the journey to this fixed exchange rate is a long one.
When the SAMA, the central bank of Saudi Arabia, was established, the country was using the gold standard, and Riyals were backed by British sovereign coins. However, in 1951, the Riyal was pegged to the Dollar at 3.68 riyals per US Dollar. This lasted only until 1959 when Saudi Arabia adopted a free exchange rate system, but after a brief period, it moved back to the fixed exchange rate system at 3.75 riyals per US Dollar.
After the 1970s energy crisis, the Riyal was pegged to the Special Drawing Rights (SDR) of the International Monetary Fund (IMF) at 4.28255 Riyals per SDR, which lasted for almost six years. In 1981, the country again pegged its currency to the Dollar at 3.75 Riyals per USD which is in use until now.
Although the peg was often questioned and low oil prices forced Saudi to devalue its currency, the country stuck to its original decision of pegging its currency to the USD.
Why does Saudi Arabia have a fixed exchange rate?
Saudi Arabia followed a fixed exchange rate and pegged its currency to the Dollar. The pegging of the currency has helped the country grow its economy and maintain financial stability. Moreover, it helps the country maintain forex reserves and meet all the import demands for 43 months. The pegging of the currency also helps the kingdom maintain inflation. All these reasons could be why Saudi Arabia follows a fixed exchange rate system.
How to convert SAR to INR?
You can convert SAR to INR manually or by using an online currency converter.
To convert manually, you must divide the value in SAR by the SAR INR exchange rate. For example, if you want to convert 50,000 SAR to INR, you must divide this by 0.045 (1 INR = 0.045 SAR), and you will get the equivalent amount in Rupees.
SAR 50000 = INR 11,02,958
Alternatively, you can use a currency converter such as Jupiter currency converter to do the same calculation within seconds. All you have to do is select SAR from the dropdown and enter 50,000 against it, and you will get the equivalent amount in INR at the latest exchange rate within seconds.
Using a currency converter is easier than calculating manually because it is quick and saves time. Moreover, with changing exchange rates, using a calculator makes sense.
Why should I convert INR to SAR in India itself?
If you plan to travel to Saudi Arabia, it is best to convert INR to SAR in India itself. Why’s that?
Firstly, if you plan to exchange it at the Saudi airport because you need money for a cab or hotel, then you will end up paying more as airport exchange rates are higher than usual.
Second, if you plan to exchange it in Saudi Arabia, you might not be able to cover your expenses as the maximum amount of cash you can carry is Rs 25,000 from India. Hence exchanging INR for SAR in Saudi is also ruled out.
Lastly, if you plan to use a debit or credit card and withdraw money from the ATM, you will have to pay more charges. These charges vary from bank to bank. Hence check with your bank before you carry a debit or a credit card to Saudi.
The best option is to carry a forex card preloaded with Saudi Riyals.
Historical rates of Indian Rupees to Saudi Riyal
Frequently Asked Questions
Is Saudi riyal fixed to USD?
Yes, the Saudi Riyal is pegged to the USD at 1 USD = 3.75 SAR. The peg has been continuing since 1981, and the country has no plans to delink the currency.
How much is 1 Halala equal to in Riyals?
Each Saudi Riyal is divided into 100 Halala, and hence one Halala is one-hundredth of a Riyal.
What is KSA in the country?
KSA stands for Kingdom of Saudi Arabia, which is also the country's official title. KSA is the largest country in the Arabian Peninsula. It is also one of the world's youngest countries and was established by King Abdulaziz Al-Saud in 1932.
What is the lowest-ever SAR to INR?
The lowest SAR to INR ever in the 1994 to 2023 period is Rs 8.36. It was the exchange rate between the two currencies in 1994.
How Much Saudi Riyal Can You Take to India?
The maximum amount of Saudi Riyal you can carry in cash to India is SAR 18,000 (USD 5,000). If you carry more than this, you must declare it at customs before arriving in India.
How much cash can I carry to Saudi Arabia?
You can carry maximum cash of SAR 60,000 to Saudi Arabia. If you carry more than this, you must declare it at customs.
List of supported countries
Common currency conversion values at today’s exchange rate:
Commonly used currency terms are:
1 crore which has 7 zeroes - 1,00,00,000
1 Arab which has 9 zeroes - 1,00,00,00,000
1 Kharab which has 11 zeroes - 1,00,00,00,00,000
1 Neel which has 13 zeroes - 1,00,00,00,00,00,000
1 Padma which has 15 zeroes - 1,00,00,00,00,00,00,000
1 million which has 6 zeroes - 1,000,000 (Ten lakh in Indian common currency terms)
1 billion which has 9 zeroes - 1,000,000,000 (One Arab in Indian common currency terms)