Business | Economy

Saudi Arabia insists it will not depeg riyal

Hamad Al Sayyari, the governor of the Saudi Arabian Monetary Agency (SAMA), has reiterated the Kingdom's current policy of pegging the riyal with the dollar. He said the slowdown in the US economy will not have much effect on Saudi Arabia.

  • By Mariam Al Hakeem, Correspondent
  • Published: 00:52 February 1, 2008
  • Gulf News

Riyadh: Hamad Al Sayyari, the governor of the Saudi Arabian Monetary Agency (SAMA), has reiterated the Kingdom's current policy of pegging the riyal with the dollar. He said the slowdown in the US economy will not have much effect on Saudi Arabia.

Al Sayyari said there was no change in the Saudi currency exchange rate.

"There is no change in the current policy of the riyal exchange rate," he said while addressing a forum on financing small and medium-scale enterprises in Riyadh.

The governor expected inflation in the Kingdom to maintain its 4.1 per cent rates, which it reached at the end of last year, up from 2.2 per cent the previous year.

Al Sayyari noted that the Saudi economy was passing through an accelerated growth stage at all sectors. He added that this growth was strongly supported by the private sector's investments, which will increase production and create sustainable growth.

"The government backs this dynamic growth through its reform and economic liberalisation polices," he said.

Asked about what the Saudi authorities will do in case the US Federal Reserve again cuts interest rates by 50 points, Al Sayyari noted that if this happens it will immediately be studied and a decision will be taken.

He pointed out that the measures taken by the government on Monday will positively increase citizens' income and help them facing inflation rates.

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