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Saudi Riyal Currency Modestly Undervalued -IMF - ASHARQ AL-AWSAT English Archive
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WASHINGTON (Reuters) – Saudi Arabia’s riyal currency is a bit undervalued at the moment but this is likely to prove short-lived, the International Monetary Fund said on Tuesday.

“(IMF) directors noted the (IMF) staff view that the Saudi riyal appears to be moderately undervalued at present. Many saw this as a transitional phenomenon reflecting the positive terms-of-trade shock,” the IMF said in a statement.

“Further, they noted that any undervaluation of the real effective exchange rate can be expected to reverse in the near term as the external current account surplus declines in response to the authorities’ expansionary fiscal stance,” the IMF said in a regular assessment of the Saudi economy.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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