History
The riyal has been the currency of Saudi Arabia since the country came in to being and was the currency of Hejaz before Saudi Arabia was created. The Hejaz riyal was based on (though not equivalent to) the Ottoman 20 kuruş coin and was consequently divided into 20 ghirsh. However, although the Hejaz riyal was the same weight as the Ottoman 20 kuruş, it was minted in .917 fineness, compared to .830 fineness for the Ottoman coin. Thus, because the first Saudi riyal had the same specifications as the Hejaz riyal and circulated alongside Ottoman coins, it came to be worth 22 Ottoman kuruş and was consequently subdivided into 22 ghirsh when coins denominated in ghirsh were issued from 1925. This remained the system of currency even though the riyal was subsequently debased to a coin equivalent in silver content to the Indian rupee in 1935.
Note that the Latin alphabet spelling "ghirsh" rather than "qirsh" reflects the pronunciation in Saudi Arabia, while in the Arabic script the spelling was the same as used elsewhere, قرش.
In 1960, the system was changed to 20 ghirsh = 1 riyal and this was followed in 1963 by the introduction of the halala, worth one hundredth of a riyal. Some Saudi coins still bear denominations in ghirsh but this denomination is no longer commonly used.
For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.
Read more about this topic: Saudi Riyal
Famous quotes containing the word history:
“While the Republic has already acquired a history world-wide, America is still unsettled and unexplored. Like the English in New Holland, we live only on the shores of a continent even yet, and hardly know where the rivers come from which float our navy.”
—Henry David Thoreau (1817–1862)
“Every generation rewrites the past. In easy times history is more or less of an ornamental art, but in times of danger we are driven to the written record by a pressing need to find answers to the riddles of today.... In times of change and danger when there is a quicksand of fear under men’s reasoning, a sense of continuity with generations gone before can stretch like a lifeline across the scary present and get us past that idiot delusion of the exceptional Now that blocks good thinking.”
—John Dos Passos (1896–1970)
“Properly speaking, history is nothing but the crimes and misfortunes of the human race.”
—Pierre Bayle (1647–1706)