The 600% Jump in Dollar Loans That Shows Saudis' Riyal Aversion
- Saudi interbank borrowing costs at highest in almost 10 months
- Companies raise cash before potential U.S. rate increase
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Dollar borrowing in Saudi Arabia has surged seven-fold this year as the kingdom’s companies switch out of increasingly expensive local currency-denominated loans.
About 65 percent of all loans taken out in Saudi Arabia through Tuesday were in dollars, compared with 13 percent for all of 2014, according to data compiled by Bloomberg. Borrowers raised more than $11 billion in U.S. currency, compared to $1.7 billion for all of last year. Riyal borrowing fell 45 percent.