Economics
Saudi Central Banker Sees No Threat to Currency's Dollar Peg
- 2015 GDP growth may exceed 3%, beating economists' estimates
- Al-Mubarak `not concerned' about the drop in the stock market
This article is for subscribers only.
Central bank Governor Fahad Al-Mubarak said Saudi Arabia will stick with its currency peg as long as oil underpins the economy, dismissing speculation that the country’s currency system is coming under pressure.
Investors have increased bets that Saudi Arabia and others in the region will be next to drop their pegs after China devalued the yuan and Kazakhstan allowed its currency to float. One-year forward contracts for the Saudi riyal, an indicator of where investors expect it to trade, are near the highest since 2003.