Business | Economy
'No change in riyal's dollar peg'
Saudi Arabia has no plan to shift the riyal's US dollar peg or change its current exchange policy, Hamad Al Sayyari, Governor of the Saudi Arabian Monetary Agency (Sama) said.
- By Mariam Al Hakeem, Correspondent
- Published: 00:00 September 28, 2007
Riyadh: Saudi Arabia has no plan to shift the riyal's US dollar peg or change its current exchange policy, Hamad Al Sayyari, Governor of the Saudi Arabian Monetary Agency (Sama) said.
"Some believe that there is a cold relation between the Saudi riyal and the dollar, but on the contrary, there is good room for movement," he said.
He added that the monetary policy in the Kingdom was subject to the requirements of the economy.
Al Sayyari highlighted the results achieved by the Saudi Arabian economy in 2006 and denied reports that the Kingdom is planning to reduce interest rates, to curb inflation.
Terming the 3.8 per cent inflation jump last month as a matter of concern, Al Sayyari said the rise could be attributed to the strong demand and economic activities at the domestic level and the increase of prices of imported commodities at the foreign level.
"The Kingdom is keen to maintain an equilibrium between inflation control and economic growth. It wants to create new jobs, encourage investment and attain a reasonable price level," he added.
Al Sayyari said the money flow in the Kingdom has increased 18 per cent, matching an international money flow surge.
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