The purposes of the Saudi Arabian Monetary Authority are as follows:

• A- Issuing and supporting the Saudi currency and consolidating its value both domestically and internationally.

• B- Performing the functions of the government bank.

• C- Monitoring commercial banks and those engaged in currency exchange activities.

The Saudi Arabian Monetary Authority is not permitted to pay or receive interest; it may only impose fees for the services it provides to the public or the government in order to cover the institution's expenses. These fees are issued by a regulation approved by the Board of Directors and endorsed by the Minister of Finance.

The institution is not allowed to have capital and must return all of its capital to the government.

The functions of the Saudi Arabian Monetary Authority regarding currency operations and the supervision of commercial banks are as follows:-

• A- Stabilizing and supporting the internal and external value of the currency and working to strengthen the currency cover. The Authority may, for this purpose, buy and sell gold and foreign currencies in the market whenever it deems necessary. This is within the limits and under the conditions approved by the Minister of Finance and National Economy, and these operations are surrounded by the utmost possible confidentiality.

• B- Safeguarding and managing the reserve funds allocated for currency purposes on the basis that these funds may only be operated in operations related to currency.

• C- Minting, printing, and issuing the Saudi currency and all other related activities in accordance with the Saudi Currency System No. 24 dated 23 Jumada Al-Awwal 1377 AH.

• D- Supervising commercial banks and those engaged in currency exchange activities and issuing specific instructions for them whenever deemed necessary.

• Every commercial bank operating in the Kingdom must submit to the Saudi Arabian Monetary Authority a monthly statement of its financial position in accordance with the forms prepared by the Authority for this purpose. It must also provide the Authority with any data it requests that clarifies or complements the previous data, and the data requested by the Authority must not include the banks' disclosures about clients' private accounts.

• E- Mandating commercial banks to maintain a permanent balance at the Saudi Arabian Monetary Authority at a certain percentage of their deposits. This percentage is determined from time to time based on a decision issued by the Minister of Finance upon the Authority's proposal.

• Every bank must strictly implement the instructions issued in this regard by the Authority.

The institution performs the functions of the government bank, where it deposits all government revenues and disburses payments in accordance with the instructions set by the government and communicated to it by the Minister of Finance.

The institution shall establish a department for research whose function is to collect and examine all necessary information to assist the government and the institution in formulating and implementing the financial and economic policy they pursue.

The Saudi Arabian Monetary Authority shall not engage in any of the following actions:-

• A- Engaging in any action that contradicts the principles of Islamic Sharia, thus it is not permitted for it to pay or receive interest on transactions.

• B- Receiving private deposits.

• C- Lending to the government, private entities, or individuals.

• D- Engaging in trade or participating in commercial activities or having an interest in any commercial, industrial, or agricultural project.

• E- Purchasing or owning real estate, except for what the authority needs to carry out its operations.

This institution, namely (the Saudi Arabian Monetary Authority), is not limited in duration; it is a permanent institution. It is authorized to directly undertake the activities it deems necessary and appropriate to carry out in accordance with its regulations. It has - without any limitation on its powers - the authority to contract, own Real Estate, and retain it, as well as to engage in the Obligations it finds necessary and appropriate for the conduct of its business.

The Board of Directors of the Saudi Arabian Monetary Authority consists of:

• A- A President who is the Governor.

• B- The Deputy Governor.

• C- Three members who have sufficient knowledge of financial and commercial affairs and are not government employees.

• The Governor and the members of the Council are appointed by a royal decree for a term of five years based on the proposal of the Minister of Finance and the approval of the Council of Ministers, and they may only be removed from their positions by a royal decree issued in the same manner. The Council meets at the invitation of its President or his deputy in his absence, and the invitation to the meeting must be sent at least once a month. In the absence of the Governor, the Deputy Governor presides over the Council.

• The decisions of the Council are issued by a majority of the votes of those present, provided that the number of weighted votes is not less than three. In the event of a tie, the vote of the President is decisive.

• The decisions of the Council are communicated to the Minister of Finance immediately after they are issued.

The governor is the one who manages the affairs of the institution and represents it before the Judiciary. The deputy governor is appointed by a royal decree based on the proposal of the Minister of Finance and the approval of the Council of Ministers, and he substitutes for the governor during his absence in all his competencies and can be dismissed in the same manner. The salary of the governor, the deputy governor, and the bonuses of the board members are determined by a decision of the Council of Ministers based on the proposal of the Minister of Finance. The appointment, promotion, and dismissal of the remaining employees of the institution, excluding the governor and the deputy governor, are carried out by the governor in accordance with the Regulation approved by the board of directors, which generally considers the rules and regulations issued in this regard for the employees and workers of the Kingdom, both Saudis and foreigners. The governor has the authority to determine the salaries and wages of these employees and workers, as well as the duration and conditions of their service, their duties, and responsibilities, provided that they do not conflict with that Regulation.