RIYADH (Reuters) – Saudi Arabia may be reluctantly considering its first riyal revaluation since 1986 to address concern among Gulf Arab neighbours about the region’s peg to the tumbling dollar, al-Riyadh newspaper quoted an official of the regional economic bloc as saying.
“Saudi Arabia might have started a study to change the riyal’s exchange rate but it probably does not want to officially announce these studies to avoid creating concern in markets until a final decision is made,” the paper said, citing Abdul-Aziz al-Uwaisheg, head of studies and economic integration at the Gulf Cooperation Council General Secretariat.
“There is a clear divergence over this issue, but on the other hand there is a common desire from everybody to revalue and shift to a currency basket,” Uwaisheg said, according to the paper.
A source familiar with Saudi currency policy told Reuters on Friday Saudi Arabia could consider revaluing the riyal with other Gulf oil producers, but has no plans to drop its peg to the sliding dollar to track a currency basket.
Uwaisheg said he could not immediately about al-Riyadh report because he was in a meeting when Reuters called.