Saudi Arabia Breaks Gulf Silence on Peg Seen Here to Stay
- Saudi Arabia, U.A.E. have fiscal strength to defend pegs
- Smaller oil reserves, debt make Oman and Bahrain vulnerable
Low Oil Prices May Impact Saudi Arabia's FX Peg
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Saudi Arabia’s pledge to maintain its dollar currency peg, amid oil’s slump to a six-year low, is likely to be followed by its smaller Gulf neighbors.
Ahmed Alkholifey, the Saudi central bank’s deputy governor for research and international affairs, told Al Arabiya television Tuesday that authorities will maintain the peg at 3.75 riyals per dollar. One-year forward contracts for the riyal, which have surged this month on speculation it may be devalued, fell after his remarks.