(Bloomberg) — Saudi Arabia replaced its central bank governor on Sunday night and named his predecessor to replace him.In a series of royal orders published on Sunday, Ahmed Alkholifey was removed from his position heading the monetary authority. Fahad Al-Mubarak, who was central bank governor from 2011 to 2016, was appointed to take his place.Al-Mubarak had most recently been a minister of state and the kingdom’s sherpa for the Group of 20 industrialized economies. Alkholifey was simultaneously appointed an adviser to the royal court.Saudi Arabia’s central bank has been one of the key vehicles for providing stimulus to the economy as the coronavirus pandemic and low oil prices hobble the private sector. The monetary authority has extended over 100 billion riyals ($27 billion) to local banks in liquidity injections and to cover the costs of loan deferrals for small businesses hit by the pandemic.What Bloomberg Economics Says…“As the governor of a central bank with a pegged currency, the role isn’t the classic one of setting interest rates. The importance of the post is in being the custodian of the country’s foreign exchange reserves.”– Ziad Daoud, chief emerging-markets economistSaudi Arabia pegs its currency to the dollar and tends to move in lockstep with the U.S. Federal Reserve. However the central bank controls the kingdom’s reserves, which are among the largest in the world at 1.7 trillion riyals.The central bank updated its mandate late last year to include supporting economic growth as one of its prime objectives, formally changing its fundamental operating principles for the first time in more than 60 years.(Corrects currency conversion in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
- ^ Saudi Central Bank Head Replaced With His Predecessor (au.finance.yahoo.com)
Source URL: Read More
The public content above was dynamically discovered – by graded relevancy to this site’s keyword domain name. Such discovery was by systematic attempts to filter for “Creative Commons“ re-use licensing and/or by Press Release distributions. “Source URL” states the content’s owner and/or publisher. When possible, this site references the content above to generate its value-add, the dynamic sentimental analysis below, which allows us to research global sentiments across a multitude of topics related to this site’s specific keyword domain name. Additionally, when possible, this site references the content above to provide on-demand (multilingual) translations and/or to power its “Read Article to Me” feature, which reads the content aloud to visitors. Where applicable, this site also auto-generates a “References” section, which appends the content above by listing all mentioned links. Views expressed in the content above are solely those of the author(s). We do not endorse, offer to sell, promote, recommend, or, otherwise, make any statement about the content above. We reference the content above for your “reading” entertainment purposes only. Review “DMCA & Terms”, at the bottom of this site, for terms of your access and use as well as for applicable DMCA take-down request.