Currency Peg

لعبة (سيسو) للسيولة السعودية

This article was originally published in Forbes Middle East. The advantages of the U.S dollar peg for Saudi Arabia have been multi-fold. It has resulted in stable export revenues, reduced transactions costs and a simple yet disciplined macroeconomic policy. This peg is especially important for Saudi Arabia as despite certain measures to diversify, their economy is dependent on oil and gas and connected activities. The oil price plunged in mid-2014, and the currency peg has been under pressure since then....