Of late we have observed volatility in the USD/SAR forward market due to the mispricing linked to market operators' misperception about Saudi Arabia's overall economic backdrop. Factors affecting the forward market are largely speculative in nature.
Saudi Arabia's key economic and financial indicators are stable, as reflected by its net creditor position with a sound and resilient banking system.
I would like to reiterate our official position that Saudi Arabian Monetary Agency (SAMA) will uphold its mandate of maintaining the peg at SAR 3.7500 per USD, backed up by the full range of monetary policy instruments including its foreign exchange reserves.
