Saudi Arabian Riyal and the U.S. Dollar
While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
In a critical essay, discuss the advantages and disadvantages of the pegged exchange rate.
Indicate the main considerations Saudi Arabia faces from a currency perspective (e.g., currency values, interest rates, inflation, and trade issues) that ensue given two scenarios:
The first scenario is a dramatically declining world oil price.
The second scenario is a dramatically increasing world oil price.
Directions:
Your essay is required to be four pages in length, which does not include the title page and reference pages,
Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.
follow APA style guidelines.
the textbook (9781337558938 ebook: 9781337671224 International economics 17 Cengage Learning. Carbaugh, R. J. 2019)
and at least 4 scholarly, peer-reviewed journal articles.
make sure the refrncess is scholarly, peer-reviewed journal articles or use the below
EBSCO
EMERALd
Proquest
Science direct
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