SAMA not concerned about the US government shutdown
Al-Mubarak made the comments on the sidelines of meetings held by Gulf Arab monetary and finance officials in Riyadh, Reuters reported.
Fawaz H. Al-Fawaz, a Riyadh-based economic consultant, said: “There is no risk to Saudi financial system, as the Saudi riyal is pegged to the dollar.”
He told Arab News: “The US dollar is a reserve currency. All US debt is in dollars and they have no reservations in issuing more dollars to deal with debt problems.”
John Sfakianakis, chief investment strategist at Masic, said: “Markets are not expecting a surprise from the US in terms of either a default or no agreement at all. Common sense will prevail and there will be positive momentum this week, as there have been signs pointing in that direction.”
However, Sfakianakis said: “The repercussions of a US default will be catastrophic for the global economy, but we are far from that. Just like in the past, an agreement was reached and politicians put their views aside for the common good.”
Al-Fawaz said: “As long as the dollar is an anchor in the international financial system, the US will have the ability to deal with their monetary policy. They will be able to deal with debt issue.”
- As American decade of easy money ends, Gulf currencies brace themselves for a 'nervous breakdown'
- More money to be taken care of: private wealth growth in the GCC exposes need for prudence
- With $100 billion in foreign reserves: is Libya's central bank monopolizing the country's economic potential?
- After 23 years in office,why was the UAE's central bank governor replaced?
- Why Turkey's 'tense' relations with rating agencies is damaging
- Too much of a good thing? Saudi economy said to be stable, able to reach 4.4 pct growth in 2014
- The approaching avalanche? How a US debt default can hit the GCC hard
- SAMA selects Logica to implement payments network
- Saudi Arabia rules out change in riyal currency's peg to the dollar
- First international bank to issue a public SAR bond in Saudi Arabia