Analysts: Saudi spending will lead to the depletion of Saudi financial inventories during 5 years
Analysts: Saudi spending will lead to the depletion of Saudi financial inventories during 5 years
2016/1/10 17:38
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the World Bank recommended that Saudi Arabia used the huge foreign exchange reserves to defend the real, amid global fears of a slide into a new phase of the global currency war.
The British newspaper The Telegraph, “The volatile linkage to currency Kingdom dollar exposure standard pressure this week as oil prices fell to their lowest levels in 12 years, reaching $ 32 a barrel.”
Analysts fear that the reduction of the Saudi currency’s value can set off a new wave of deflation and the adoption of impoverishment neighbor policies based on competitive devaluation of the value of world currencies in the fragile world economy and global stock sell troubled.
She Francesca Oonsurj, chief economist at the World Bank, “It is imperative that the largest producer of Brent crude in the world to continue to protect the exchange rate of its currency through the use of huge reserves of money.
“She Oonsurj the British newspaper that” for the time being at Riyadh large reserves, and reserves can be used during the adjustment period.
“The oil more than three-quarters of government revenues in Saudi Arabia, but exacerbate the oversupply in the global markets led the kingdom to depletion of reserves at a record pace in order to maintain its peg to the 30-year dollars.
According to Bank estimates [Bank of America Merrill Lynch] to lower central bank reserves of $ 735 billion to about $ 635 billion in current and projected to lead those pace of spending to the Kingdom’s money supply exhausted within five years.
David Honer, in a bank [Bank of America Merrill Lynch, said that “any new round of conflict with rival Iran, and low world oil prices, will lead to the erosion of reserves it is also a great deal.” is over
alliraqnews.com
