Currency values of Saudi Arabia’s Currency and the U.S. Dollar

        Be declining the oil prices the currency values of the Saudi Arabia will also lower. Due to the slumping oil prices the speculation are growing which would be lead the Saudi Arabia to ditching the currency values as peg for the dollar. Due to the lower oil prices the dollar will be strength and it would create the pressures for the economy of Saudi Arabia. By increasing in the dollar due to the falling the prices of the oil most of the Middle East countries included as Saudi Arabia is getting double hit.

        The devaluation of the currencies can be preventing by the pegs. Since the 2014 the oil prices have been tumbled out 35% and it will reach their lowest along the four years. For the dollar Saudi Riyal also has pegged. Since 2011, the currency of the one year is felling forwards to the lowest. The spot rate of the Riyal has been declined for 3.7525 in against to the peg of the 3.75.  The values of the currency of the Saudi Arabia would down due to the falling the prices of the crude oil and the dollar’s value would be high, because the oil is considered as the balancing the measure for the economy of the Saudi Arabia. Large outflows of the capital which are happened by the country are also appeared by it (Wilson 2016).

References of Currency values of Saudi Arabia’s Currency and the U.S. Dollar

SRSROCCO. 2017. Low Oil Prices Continue To Decimate Saudi Arabia’s Currency Reserves. IN ECONOMY, ENERGY, NEWS.

Wilson, P. W., & Graham, D. F. 2016. Saudi Arabia: The Coming Storm: The Coming Storm. Routledge.