SEU Critical Thinking Saudi Arabian Riyal and the U.S. Dollar Essay
Description
Critical Thinking: Saudi Arabian Riyal and the U.S. Dollar
While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
In a critical essay, discuss :
1-The advantages and disadvantages of the pegged exchange rate.
2-Indicate the main considerations Saudi Arabia faces from a currency perspective (e.g., currency values, interest rates, inflation, and trade issues) that ensue given two scenarios:
The first scenario is a dramatically declining world oil price.
The second scenario is a dramatically increasing world oil price.
Directions:
Your essay is required to be Four to Five pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.
Support your submission with course material concepts(attached), principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.
Required readings:
Chapter 12 in International Economics (attached)
Ofer, A., & Varon, E. (2019). Turkish currency crisis- spillover effects on European banks. Borsa Istanbul Review, 19(4), 372-378.
Hiro, I., & McCauley, R. (2019). A key currency view of global imbalances. Journal of International Money and Finance, 94, 97-115.
Muhammad, A., & Iftikhar, A. (2019). Empirical investigation of foreign direct investment and current account balance in East Asian economies. Journal of Commerce & Social Sciences, 13(3), 779-795.
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Saudi Arabian Riyal and the US Dollar
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