Saudi central bank bans use of options against riyal: executive | Reuters:
"Saudi Arabia's central bank has told banks it is banning the use of options and other derivatives to speculate against the riyal, in a new effort to reduce pressure on its currency peg, a senior executive at a Saudi bank told Reuters on Sunday.
The Saudi Arabian Monetary Agency "wants to make sure that there is no snowball effect against the riyal in the forwards markets", the executive said, declining to be named because of commercial sensitivities.
"So now banks in the country are banned from accepting any options against the riyal." Non-speculative trade in the riyal forwards market is not forbidden, the executive added."
'via Blog this'
No comments:
Post a Comment