“Maintaining the riyal peg at current levels remains a key policy priority for the Saudi authorities. In a low oil price environment, however, this means that fiscal policy will have to tighten, keeping the budget deficit in check in order to ensure that external balances remain consistent with peg stability.”
-Farouk Soussa, London-based analyst at Goldman Sachs, said in a report discussing the Riyal peg to the dollar, in a note to clients. [Bloomberg]
