Saudi Arabia rules out revaluation of currency

Saudi Arabia on Wednesday ruled out revaluing its dollar-pegged riyal saying currency stability was important for investors in the world’s largest oil exporter, and would be concerned if the dollar fell ’substantially.’

Asked if he was concerned about the decline in the US dollar, Saudi Central Bank Governor Hamad Saud al-Sayyari told Reuters in Riyadh: ‘Yes, we are concerned if it falls substantially … but this is the market – we have to see it and we have to accept it.’ Sayyari would not be more specific.


‘What’s important for us is the development programme … we think stability in the exchange rate and transparency is important for investors,’ Sayyari said. ‘This is one of the most important considerations.’

Sayyari also told Al Arabiya Television: ‘We are willing and able to intervene … to maintain the exchange rate,’ when asked whether the kingdom was prepared to defend the riyal against currency traders.

TradeArabia