Saudi Arabia’s successful international bond sale earlier this month has eased concerns about the sustainability of its currency peg, but exchange rates in other frontier oil exporters remain in the spotlight. The Kingdom’s US$17.5bn issue was a record for an emerging market sovereign, outstripping Argentina's bond sale in April, and was heavily oversubscribed. Coupled with ongoing fiscal austerity, it seems to have convinced the financial markets that the country can adjust to lower oil prices without devaluing the riyal.
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