SAR Outlook: Three Weeks Later

October 2007 | Market Strategy

Although there is still heavy upside pressure on the Saudi riyal, we stand by our core view that the SAMA does not need to revalue the currency, at least not yet. We certainly do not rule out an adjustment at some point in the coming months and years. However, the arguments against a move are as compelling as ever, and we think the monetary authorities can afford to keep the peg as it is in the short-to-medium term.

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