Saudi Arabia orders banks and exchange houses to improve quality of banknotes in circulation

The Saudi Central Bank (SAMA) has instructed all banks, cash centres and exchange houses operating in the Kingdom to improve the quality of Saudi banknotes in circulation by implementing stricter sorting and processing standards under a phased timetable.

Under the directive, institutions will begin sorting sixth-edition banknotes in the 50, 100, 200 and 500 -riyal denominations from July 14, 2026, while 5, 10, and 20-riyal notes will be subject to the new procedures from November 15, 2026.

SAMA said financial institutions must ensure that all cash-counting and sorting machines comply with prescribed technical requirements and are programmed to enhance the quality of currency circulating within the Kingdom.

The central bank classified banknotes into four categories: fit for circulation, fit for circulation with minor defects, unfit for circulation despite minor defects, and unfit for circulation.

The new standards require banknotes to be free from excessive dirt, large stains exceeding 15 by 15 millimetres, writing or drawings, and identifying marks. Notes with large holes, tears, missing parts, folds or adhesive tape must also be removed from circulation.

SAMA said it would oversee implementation by continuously assessing the condition of circulating currency, monitoring the volume of unfit banknotes destroyed, verifying the programming of sorting machines and ensuring compliance with the new standards.