Critical Thinking: BoP Dynamics & Currency Depreciation
Description Critical Thinking: BoP Dynamics & Currency Depreciation Task #1 Saudi Arabia’s Exchange Rate Policy and BoPDynamics. Saudi Arabia has maintained a fixed exchange rate (SAR 3.75/USD) since 1986. a) Analyze how oil price volatility impacts Saudi Arabia’s BoP under this peg. b) What are the risks of maintaining the