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Saudi Arabia Said to Probe Bank Currency Products Amid Peg Bets

  • Central bank said to ask banks for information on fx forwards
  • Bank asking how products differ from earlier banned options
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Saudi Arabia Said to Probe Bank Currency Trades

Matthew Martin, Archana Narayanan and Deema Almashabi
Updated on

Banks in Saudi Arabia are coming under fresh pressure over products that allow speculators to bet against the kingdom’s currency peg, according to people with knowledge of the matter.

The Saudi Arabia Monetary Agency has asked lenders to explain why they are offering dollar-riyal forward structured products to customers less than four months after the regulator banned options contracts that let speculators place wagers on a currency devaluation, the people said. The authority, known as SAMA, didn’t reply to requests for comment.