The renewed closure of the Strait of Hormuz is likely to create further strains in Bahrain’s balance of payments. FX reserves provide very limited capacity to sustain the dollar peg and roll over maturing external debt. But our base case is that either Saudi Arabia or the UAE will step in with more help if needed.
We’ll be discussing our latest EM Financial Risk Indicators in an online briefing at 10:00 ET / 15:00 BST on Wednesday 5th August. Register here.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
