The currency value of the Saudi Arabia would be high by increasing the oil prices in the world. By increasing the oil prices the dollar will become week for the currency of the Saudi Arabia and it pressures would be decreased for the economy of Saudi Arabia. By decreasing in the dollar due to the increasing the prices of the oil most of the Middle East countries included as Saudi Arabia will save and the values for their currency would be enhance. The currency and exchange rate for the Saudi Arabia would be appreciated.

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

        The inflation rate will be increase as well by increasing the oil prices. The value of the currency for foreign exchange can be tended toward depreciates or appreciates for the rate which is equal to the difference of the domestic and foreign inflation. By increasing the inflation rate in the economy of the Saudi Arabia than its money has grater purchasing power for buying the domestic goods. For buying the abroad products the currency can be depreciated.

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

Blanchard, O. J., & Riggi, M. 2013. ". Why are the 2000s so different from the 1970s? A structural interpretation of changes in the macroeconomic effects of oil prices." Journal of the European Economic Association 11 (5): 1032-1052.

Cappelen, Å., & Choudhury, R. 2017. ". The Future of the Saudi Arabian Economy Possible Effects on the World Oil Market. Oil in the Gulf: ." Obstacles to Democracy and Development, 41-62.

Hussain, M., Zebende, G. F., Bashir, U., & Donghong, D. 2017. ". Oil price and exchange rate co-movements in Asian countries: Detrended cross-correlation approach. Physica A:." Statistical Mechanics and its Applications 46 (5): 338-346.

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.