Traders expected devaluation of the national currency of Saudi Arabia, may suffer losses due to rising oil prices
Forward contracts on exchange rate Saudi Riyal 12 months close to the minimum level since November. According to Bloomberg estimates, putting on these forwards of $ 1 million at the peak value in January, investors would have lost 68.9 thousand. Riyals ($ 18.37 thousand.), Or about 1.8%.
Thus, concludes Bloomberg, oil prices rebound to around $ 40 per barrel means that investors count on the refusal of Saudi Arabia from continuing for 30 years rial peg to the US dollar, may suffer losses
In February, the agency sources reported that the devaluation of the currency of Saudi Arabia, in particular, put a few US hedge funds.
Reducing rates for refusal Gulf states peg the national currency to the dollar reflects the resumption of oil prices growth this year. Oil is the main source of income of Saudi Arabia, can finish in positive territory for the second month in a row.
With the beginning of February, oil has risen in price by about 50%.
Since 1986, the exchange rate of the national currency is the Saudi rial 3.75 / $ 1.
"We have said that those who are preparing for the devaluation will be disappointed"- said the chief economist of HSBC Holdings (LON: HSBA) Plc in Central and Eastern Europe, the Middle East and North Africa in London, Saymon Uilyams.
According to him, the countries of the Persian Gulf "30 years retain peg to the dollar in times of high and low oil prices" and it does not seem to the recent decline in commodity quotations "changed their position or pushed for immediate action".
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