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FINANCIAL NEWS
Al Jasser: Saudi riyal will remain pegged to US dollar
15 Feb 2009
(MENAFN) Muhammed Al Jasser, the governor of the Saudi Monetary Agency (SAMA), insisted that the riyal will remain pegged to the US dollar, and defended the US currency’s role as the world’s main reserve currency, Reuters reported.
Speaking at the 10th Jeddah Economic Forum 2010, Al Jasser rejected the call for the International Monetary Fund’s Special Drawing Rights (SDR) to be given the reserve status instead.
The SDR serves few of the functions necessary to be an acceptable global reserve currency, such as offering opportunities as an investment medium or being used in settling trade, he told delegates.
According to Arab News daily paper, Al Jasser did say that while the euro is still far behind the dollar and faces challenges, it is slowly becoming a key reserve currency.
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