The Saudi Arabian Monetary Agency (the Central Bank) has reiterated its commitment to the policy of linking the exchange rate of the Saudi riyal to the US dollar as a strategic option that has contributed to the growth of the economy of the Kingdom of Saudi Arabia for more than 30 years.
The Corporation reaffirmed its commitment to maintain the stability of the riyal exchange rate at the official price of 3.75 riyals against the dollar, as it is an important pillar of monetary and financial stability in light of the strong foreign exchange reserves and its ability to meet all external obligations of the Kingdom.
The Corporation revealed the strength of its foreign exchange reserves and its ability to meet all the requirements of the national economy in foreign currencies, covering approximately 43 months of imports and 88% of the extended monetary block (N3).
The corporation stressed that the current exchange rate policy is a major supporter of monetary stability and sustainable economic growth, indicating that the linkage comes in light of the strong foreign exchange reserves and its ability to meet all external obligations of the Kingdom.
The Bloomberg Agency called for the need to reduce the Saudi currency in the event that oil prices remain below $30 indefinitely, as Saudi foreign reserve assets fell by 4.8 percent on a monthly basis, until the end of last March, to 1775.2 billion riyals (473.4 Billion dollars).
The Saudi Arabian Monetary Agency revealed that the reserves cover approximately 43 months of imports and 88 percent of the expanded monetary block.
Source (Al-Arabiya.net website, Edited)
