SAR-USD peg preserves domestic price stability: SAMA Governor

SAMA’s Governor Ayman Al-Sayari says non-banking financial institutions' assets now account for more than 50% of the global total 

Maintaining the peg of the Saudi riyal to the US dollar—backed by substantial foreign currency reserves—has helped preserve domestic price stability, with the Kingdom’s average annual inflation remaining below 3% over the past five years, said Ayman Al-Sayari, the Saudi Central Bank’s (SAMA) Governor.

These remarks came during Al-Sayari’s participation at a panel discussion titled “Implications of Global Uncertainty on International Monetary and Financial Systems” during the AlUla Conference for Emerging Market Economies 2026.

Al-Sayari also pointed out that rising global uncertainty has become structural rather than temporary, driven by geopolitical tensions, rapid technological shifts, commodity price volatility, and the expansion of non-banking financial brokerages whose assets now account for more than 50% of the global total.

He added that geopolitical tensions, trade fragmentation, and elevated leveraging are among the most significant and influential challenges facing policymakers in emerging markets.

Moreover, Saudi Arabia’s experience underscores the importance of maintaining adequate reserves and integrated monetary and fiscal policy frameworks to safeguard monetary and financial stability.

Policymakers should prioritize enhancing the quality of data-driven supervisory reporting, reinforcing unified standards, ensuring interoperability when prudently adopting emerging technologies, and accelerating knowledge and expertise exchange across regulatory systems to strengthen effective cross-border cooperation, the official concluded.

The Saudi riyal has been pegged at a fixed exchange rate of SAR 3.75 per each US dollar since 1986.

According to Argaam’s data,Saudi Arabia’s average annual consumer inflation rate escalated to 2% in 2025, compared with the 2024 annual average.