The Saudi riyal is the official currency of the Kingdom of Saudi Arabia. It is abbreviated as SAR and is subdivided into 100 halalas. The riyal is issued by the Saudi Arabian Monetary Authority and is used for all transactions within the country. The value of the Saudi riyal is pegged to the U.S. dollar, maintaining a stable exchange rate. This peg helps to stabilize the economy, especially since Saudi Arabia is a major oil exporter. The riyal is widely accepted in various forms, including banknotes and coins, facilitating everyday commerce.