TITLE

DYNAMICS OF EXCHANGE RATE REGIME IN SAUDI ARABIA

AUTHOR(S)
Mirza, Nawazish; Naqvi, Bushra; Kumail Abbas Rizvi, Syed
PUB. DATE
September 2013
SOURCE
Actual Problems of Economics / Aktual'ni Problemi Ekonomìki;Sep2013, Vol. 147 Issue 9, p430
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The exchange rate policies form a critical part of an economy's monetary policy and it has significant impact on the overall macroeconomic performance of a country. In this paper, we attempt to explore the rationale of a pegged exchange rate regime at KSA followed by its potential benefits and disadvantages. We also investigate the possible impact of this pegging on inflation and discuss the potential for a shift towards an alternate regime. It has been observed that SAMA's monetary policy seems to be ineffective in controlling inflation at KSA which is a natural consequence of having fixed peg regime, however, SAR-USD peg is quite successful in achieving its stated objectives of economy stabilization including the planned growth and curtailment of inflation by linking it with the USD inflation.
ACCESSION #
90577383

 

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