Introduction of Exchange Rate of Saudi Arabia & Its Impact on United States

            Saudi Arabia is considered among the largest economics of the world. Saudi Arabia have experience Economic growth in the past due to export of oil related products. Saudi Arabia is the world’s largest exporter of oil related goods and through oil exports it earns significant amount of profit. In the past the oil related goods made up approximately 73% of its exports. The economy of Saudi Arabia experience decline when changes in oil prices occur. The oil process also have significant impact on the exchange rate as well. When the economy of the corporation is dominated by oil exports the changes in oil prices have impact on the exchange rate. For instance if the price of oil increases the Saudi Arabian exchange rate will appreciate.

            The changes in exchange rate have huge impact over the trade, economy, inflation and other economic factors. The business and various organizations face significant impact of the change in exchange rate. The government take special initiatives to control the exchange rate or make it stable so that the country won’t face different issues that immerge from changers in exchange rate. By keeping the significance of exchange rate in mind and its impact over the world economy. It has been decided to perform research to investigate how the governments regulate exchange rate. The study will be conducted from the perspective of Saudi Arabia. In the study the exchange rate of Saudi Arabia will be thoroughly examined and its impact on various countries will be evaluated.

            Furthermore the study will investigate how the exchange rate of Saudi Arabia changes with the changes in oil prices and does the oil prices and exchange rate have any relationship or not. As the Saudi Arabian economy is primarily dominated by oil exports it is important to analyze the oil prices and their impact on the Saudi Arabian economy and exchange rate changes. In this study the data will be gathered from the previous studies conducted by various researchers. Different studies will become the basis for this research study to investigate how government influence the exchange rate and how it impact the oil export.