IslamicFinance.de

Saudi Arabia may need to change its currency's peg to the U.S. dollar if economic conditions shift. The riyal's peg at 3.75 to the dollar has been a cornerstone of Saudi policy since 1986. But the collapse of oil prices since 2014, which created a $100 billion state budget deficit, has fuelled speculation in financial markets. Foreign bankers said Saudi authorities had explored the idea of changing the peg in a broad review of economic policy. They concluded that a change would be counter-productive now but conceivable in the far future.