Middle East & North Africa Economics

Middle East Economics Update

30 January, 2017

Decline in Saudi interbank rates to reverse course soon

The recent decline in Saudi interbank rates reflects fading fears that the riyal will be devalued and easing liquidity shortages in the banking system. We still expect Saudi interbank rates to rise over the coming years, although this will be due to higher rates in the US rather than fresh concerns over the dollar peg.

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