advertisment
 Home » Sukuk.net wire  

Sukuk.me - Saudi urged to cut investment in US

11/08/2011 02:26:10 PM GMT   Comments ()     Add a comment   Print     E-mail to friend

 [Emirates 24/7] Saudi Arabia should cut its investment in US bonds to protect its overseas assets of nearly $492 billion, following the credit downgrade of the US given the Gulf Kingdom’s heavy reliance on the US market, National Commercial Bank (NCB) said. Besides the impact of the downgrade on Saudi foreign assets, the problem could also have indirect effects on Saudi Arabia by depressing oil prices -on the grounds that the US is the world’s largest oil consumer - and the value of the US dollar, to which the Saudi currency, the riyal, is pegged, it study showed. NCB described the downgrade as actually more of a referendum on the dollar rather than US treasuries, due to the fact that US ability to pay its debt obligations remains a “fundamental certainty”. “However, the value of those payments will essentially decline, given the fact that with more dollars in circulation due to the printing presses, the value of each dollar by definition declines, since the Kingdom is keeping much more than enough to maintain the peg of the riyal to the US dollar, it is advisable that the Kingdom should opt for diversifying future excess revenues away from US treasuries into other real assets across different currencies and regions.” In addition, recent concerns that Europe’s debt crisis could spread to Italy, the Euro-zone’s third-largest economy, accentuated fears of a vicious new global economic downturn, it added. omar1.1 iimm.bnm.gov.my
Source:

Loading comments ...
advertisment
advertisment


 Regional Sites

Regions Most Popular

- Al Arabiya

Islamic

- Islam Online
- Muslims
- Muslim Heritage
- 1001 Inventions

Regional News

- The National
- Qatar Morning Post
- Al Hayat
- Daily Bahrain
- Arab News
- Daily Saudi
- Emirate Times
- Saudi Arabia Telegraph
- Saudi Arabia Herlad
- Emirates Tribune

Business

- Sukuk
- Islamic Finance
- alJazeera Capital
- Middle East Forex
- Gulf Money
- Khaleej Forex
- Arabian Forex
- Al Arabiya Forex
- Emirates Finance Network
- Middle East Education

Middle East Vacancies

- Jobs in Saudi Arabia
- Jobs in Qatar
- Jobs in Abu Dhabi, UAE
- Jobs in Kuwait
- Jobs in Bahrain
- Jobs in Oman

Regional Marketing

- Marketing in Middle East
- UAE Marketing
- Qatar Advertising
- Kuwait Marketing
- Oman Advertising
- Bahrain Marketing
- Saudi Arabia Advertising
- Dubai Advertising