Ambrose Evans-Pritchard in The Telegraph today reports that Saudi Arabia is burning through foreign reserves at an unsustainable rate and may be forced to give up its prized dollar exchange peg as the oil slump drags on, the country’s former reserve chief has warned.
“If anything happens to the riyal exchange peg, the consequences will be dramatic. There will be a serious loss of confidence,” said Khalid Alsweilem, the former head of asset management at the Saudi central bank (SAMA). Read More
And this on the back of recent news that Russia overtook the Kingdom as the main oil supplier to China.