Economics
Saudi Arabia Said to Ban Products Betting Against Riyal Peg
- Regulator said to halt some structured forward contracts
- Ban follows one in January to stop options transactions
Saudi Said to Move on Riyal Peg Bets
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Saudi Arabia ordered banks in the kingdom to stop selling some products that allow speculators to bet against its currency peg just days after demanding information from lenders on the offerings, according to people with knowledge of the matter
The Saudi Arabia Monetary Agency sent a circular to banks this week saying that dollar-riyal forward structured contracts are banned with immediate effect, said the people, asking not to be identified because they are not authorized to comment publicly. Forward foreign-currency transactions backed by actual goods and services will still be allowed, the people said.