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Saudi Arabia: Selected Issues
Author:
International Monetary Fund. Middle East and Central Asia Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2015: Issue 286
Language:
English
Publication Date:
15 Oct 2015
DOI:
https://doi.org/10.5089/9781513505077.002
ISBN:
9781513505077
ISSN:
1934-7685
Pages:
85
Keywords:
ISCR; CR; price; oil price; private sector; government spending; equity price; energy price; NPL ratio; price reform; Energy prices; Oil prices; Fuel prices; Labor markets; Electricity; Global
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This Selected Issues paper assesses the importance of oil and interest rate spillovers for Saudi Arabia. Oil prices have fallen by more than 40 percent since mid-2014 while the Federal Reserve is expected in the coming months to begin raising its policy rate at the beginning of a gradual tightening cycle. Given the importance of oil to the economy and the peg of the riyal to the U.S. dollar, these are two key developments for Saudi Arabia. Although a temporary drop in oil prices would likely have little effect on the economy and banks given the financial cushions that have been built-up, a longer-lasting period of low oil prices would have a more significant impact.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund