Saudi Arabia intervenes to prevent currency speculation - FT.com

Saudi Arabia intervenes to prevent currency speculation - FT.com:

"Saudi Arabia has moved to damp speculation on its currency by barring domestic banks from dealing in forward contracts on the riyal as the kingdom seeks to shield its economy from the impact of the oil price plunge.
Bankers said the Saudi Arabian Monetary Authority had told lenders to refrain from engaging in trades on riyal forward options, which have come under intense pressure as traders bet that the oil-dependent kingdom’s fiscal strains will trigger a departure from decades of pegging the riyal to the US dollar."



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