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RIYADH, Feb 14 (Reuters) - Saudi Arabia's King Abdullah replaced the central bank governor of 26 years on Saturday as part of a broad government reshuffle that included the appointment of the first Saudi woman to a cabinet position.
The reshuffle did not affect the key oil and finance ministries, according to royal decrees announcing the changes.
King Abdullah promoted Muhammad al-Jasser, vice governor of the Saudi Arabian Monetary Agency (SAMA) since 1995, to the post of governor, replacing Hamad Saud al-Sayyari who has been at the helm since 1983.
Finance Minister Ibrahim al-Assaf said Jasser's appointment would not lead to a change of policy. "I don't expect that (change) ... There will be continuity," Assaf told Dubai-based al-Arabiya television.
Jasser's experience as the Saudi representative at the International Monetary Fund (IMF) will give him a better understanding of the growing expectations the world has of Saudi Arabia in the global economic crisis, said John Sfakianakis, chief economist at HSBC's Saudi subsidiary.
"He is one of the best representatives that Saudi Arabia has to speak to the outside world, he knows the mechanisms of the IMF and the World bank," Sfakianakis said.
"Jasser will maintain the consistency of the Saudi central bank because this is the characteristic of Saudi Arabia ... You take a long-term view," he added.
Under Sayyari, the world's largest oil exporter pegged its riyal currency to the U.S. dollar in 1986 and opted for a conservative policy on investing its cash surpluses.
King Abdullah also appointed Noura al-Fayez as deputy education minister, the highest government post to be filled by a woman.
DISCRIMINATION AGAINST WOMEN
Saudi Arabia, an Islamic state which applies an austere version of Sunni sharia law often termed Wahhabism, has repeatedly been criticised by international human rights organisations for discriminating against women.
The reshuffle also saw the replacement of Ibrahim al-Ghaith, head of the notorious morals police, the Commission for Promotion of Virtue and Prevention of Vice, by Abdul-Aziz al-Humayen.
The head of the commission is the kingdom's second most influential cleric.
The police have wide powers to search for alcohol, drugs and prostitution, ensure shops are closed during prayer times and maintain a strict system of sexual segregation in Saudi society, where women are even banned from driving.
The monarch appointed Saleh bin Humaid, speaker of the advisory Shura Council, as head of the Supreme Judiciary Court and replaced him on the Shura Council with outgoing Justice Minister Abdullah al-Sheikh.
The decree did not say if the kingdom will appoint a replacement for al-Sheikh.
King Abdullah also appointed Abdul-Aziz Khoja, the ambassador to Lebanon, as culture and information minister, replacing Iyad bin Amin Madani, state media reported.
Western diplomats say Madani was a strong advocate of reform in the kingdom. Clerics often attacked him for giving the local press greater freedom to challenge the strong influence of the religious establishment. (Reporting by Souhail Karam, editing by Tim Pearce)