08:01 GMT +3 hours30 May 2016
Live
A Saudi banker displays the new one hundred riyal banknote bearing the portrait of Saudi King Abdullah bin Abdul Aziz al-Saud at a bank in Riyadh, 05 June 2007

Banks on Alert! Speculators ‘Attacking Saudi Riyal'

© AFP 2016/ HASSAN AMMAR
Business
Get short URL
64405212

The Saudi currency is under strong pressure due to falling oil prices. The Saudi banks are forced to suspend derivatives trading to decrease pressure on the riyal, German newspaper Deutsche Wirtschafts Nachrichten (DWN) reported.

Saudi Arabia's central bank warned the country's banks against increasing speculations on the devaluation of the national currency.

Several bankers said on Wednesday they were told not to conduct derivatives trading to minimize the pressure on the riyal, the newspaper reported, citing Reuters.

According to the news agency, the move proved to be successful in supporting the national currency. A key currency indicator in Saudi Arabia — riyal forward points — decreased to 690 points on Wednesday from a record 1,020 points last week.

The Saudi currency is currently under heavy pressure due to falling oil prices which, combined with declining government reserves, lead to its devaluation.

Last week, oil prices dropped below $30 a barrel the first time in 12 years. Speculators argue that the country will soon have to change the exchange rate between the riyal and the dollar if the situation does not improve.

Related:
Iran Ambassador to Russia Says Current Oil Prices 'Unacceptable'
Saudi Foreign Minister Denies Oil Prices Tampering
Tags:
crisis, currency, oil prices, Saudi Arabia
Community standardsDiscussion
Comment via FacebookComment via Sputnik
  • Сomment

All comments

  • Baybars
    Good. Choke on it you Wahhabi freaks.
  • asxun
    The Saudis obeyed U.S orders in crashing the price of oil to hurt Russia, but toooooo bad it didn't work. However, if they decide to reduce production to let price go up, Russia will be the only winner and the U.S plan to hurt the Russian economy will go down the drain.
  • vendor
    Frank Zappa would freak out if he could see the Saudis are his fans.
Show new comments (0)
Top stories