The Functions of Saudi Arabian Monetary Agency

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The Functions SAMA (Saudi Arabian Monetary Agency) Name Institutional Affiliation Date: The functions SAMA (SAUDI ARABIAN MONETARY AGENCY) SAMA is the official Central Bank of Saudi Arabia. The duties of SAMA include issuing the official national currency (the Saudi Riyal), governing commercial banks, administering reserves for foreign exchange, promoting the stability of exchange rate and price and ensuring smooth growth of the economy, functioning financial systems that are cross-bank electronic such as Tadawil, SPAN, MAQASA, SADAD, and SARIE. The most significant function performed by the central bank of Saudi Arabia is the responsibility of giving advice to the government on making financial policies and implementations. The government has the mandate to decide on the currency that will circulate in the economy in a given period: the central bank implements measures to decrease or increase the supply appropriately (Ramady, 2010). The previously defined role of the central bank was to provide the government with money in cases when public expenditure exceeded the level of being financed from the current taxation. At first, its business was to receive money in the form of deposits and money lending against satisfied security. In the beginning, the lending was only done to the government, but as time went by the central bank of Saudi Arabia started functioning other duties in place of the government and was termed as the banker to the government. Therefore, it
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