As Saudi Arabia engages in historic economic adjustment in the face of dwindling revenues and running a budget deficit, the nation’s financial regulator is reported to be investigating speculators betting that its currency peg with the U.S. dollar will falter. Bank trading in unregulated derivatives in a fashion not reported to regulators, more common in the U.S., is drawing the interest of Saudi regulators.
Saudi regulators asking regional banks questions
The Saudi Arabia Monetary Agency is questioning regional banks about the increasingly volatile dollar-riyal forward structured derivatives contracts, Bloomberg reported, citing an unnamed source. Just four months ago the SAMA banned option contracts that allowed for speculation on...
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