As I understand it the Saudi Riyal is pegged to the US dollar at 3.75.
Is this expected to change in any global downturn?
Surely if the world went into super low growth or negative growth and all stock markets fell 10-20% over 6-8 months, currencies as well (which is what I am expecting), can I rely on this pegged rate to the US dollar to transfer savings into US dollars and then into AUD....
Hi Uman, i noticed you have a couple of posts on currencies and you are trying to make up your mind on your UK based payroll offer. The SAR has been pegged to the US dollar for a long time now. Back in 1998 when oil was USD15 a barrel the rate was also 3.75. There is allot of speculation about how the current euro crisis and usd debt will affect the currency markets. I lean towards the view that the world will move to a new reserve currency sometime in the next decade and the euro will be no longer. The best thing Britain did was to never bow to pressure to join that sad experiment. I expect the GBP to trade between SAR 5.6 to 6 for the rest of the year. The AUD should remain around parity to the USD. But it does not take much for the AUD to tank. With everything going on it is not an easy time to make a decision on giving up everything in Aus and moving to the middle east. Over the long term you will win some and lose some. Good luck!