Converting from Saudi Arabian Riyal (SAR) to Moroccan Dirham (MAD)

What is Saudi Arabian Riyal (SAR)

The Saudi Arabian Riyal (SAR) is the official currency of Saudi Arabia. It is subdivided into 100 halalas. The currency symbol for the Riyal is "ر.س". The SAR is usually represented internationally by its ISO code, which is SAR.

Historically, the Riyal dates back to the 1920s when it was first introduced as a national currency to replace the Indian Rupee, which was in circulation at that time. The Saudi monetary system operates under a fixed exchange rate, which means that the value of the Riyal is pegged to the United States Dollar (USD) at a rate of approximately 3.75 SAR for 1 USD. This stable exchange rate helps maintain economic stability in Saudi Arabia and fosters international trade.

The economy of Saudi Arabia is heavily dependent on oil production, and fluctuations in oil prices can impact the value of the Riyal. When oil prices are high, the economy tends to flourish, bolstering the value of the SAR. Conversely, downturns in oil prices can put pressure on the currency, affecting its exchange rate against other currencies like the Moroccan Dirham.

What is Moroccan Dirham (MAD)

The Moroccan Dirham (MAD) serves as the official currency of Morocco. Its symbol is "د.م." and the currency is further divided into 100 centimes. The ISO code for the Dirham is MAD.

The Dirham has a rich history, and it has undergone several changes since its introduction in the 7th century. The current form of the Dirham was established in 1960. Unlike the SAR, the Dirham operates on a managed float exchange system, meaning its value can fluctuate based on market conditions but is influenced by the Central Bank of Morocco.

Morocco’s economy is diverse, with sectors like agriculture, mining, and tourism playing significant roles. The stability of the MAD can be influenced by changes in these sectors, as well as by international factors such as trade and investments. The Moroccan government takes active measures to stabilize the Dirham, especially in times of currency volatility.

Converting SAR to MAD

When converting between the Riyal and the Dirham, it is essential to check the most current exchange rates. As exchange rates can fluctuate daily due to market conditions, you can find the exchange rate through financial news websites or currency converter tools online.

For example, if the exchange rate is 1 SAR = 2.18 MAD, converting SAR to MAD involves simple multiplication:

MAD = SAR × 2.18

Conversely, if you're looking to convert MAD back to SAR, the calculation would be:

SAR = (MAD/2.18)

This understanding can assist individuals and businesses in making informed financial decisions when dealing with these two currencies.