​Saudi Arabia dollar peg 'well-studied'​ ​to​ ​fuel stable economy, says Cbank governor

The long-standing peg between the Saudi riyal and dollar at a fixed rate rely on solid economic pillars, said Fahad Al-Mubarak, central bank governor.

For over 25 years, as confirmed by several international financial institutions, the riyal stable exchange rate has played a vital role in stabilizing the kingdom’s economy.

It also boosted investor confidence in the kingdom’s financial system and helped local prices maintain stability.

Therefore, business activity saw much improvement, and more local and foreign investments were drawn to Saudi Arabia, Al-Mubarak added.

The governor’s comments came during his speech at the ‘Economic Policies and Major Challenges to Saudi Economy to Achieve Sustainable Development’ workshop.

In 1986, Saudi Arabia pegged the riyal to U.S. dollar at a fixed exchange rate​ of​ 3.75 riyals, according to data available on Argaam.