Posted on 06/06/2016 1:26:43 PM PDT by bananaman22
With Saudi Riyal forwards plunging back below 3.81, dramatically weaker than the current peg, Bloomberg reports that Saudi authorities are cracking down on currency traders as speculation mounts that the world’s biggest oil exporter won’t be able to maintain the riyal’s peg to the dollar as revenue plunges.
Saudi Arabia ordered banks in the kingdom to stop selling some products that allow speculators to bet against its currency peg just days after demanding information from lenders on the offerings, according to people with knowledge of the matter.
The Saudi Arabia Monetary Agency sent a circular to banks this week saying that dollar-riyal forward structured contracts are banned with immediate effect, according to sources asking not to be identified because they are not authorized to comment publicly. Forward foreign-currency transactions backed by actual goods and services will still be allowed, the people said.
(Excerpt) Read more at oilprice.com ...
Is this supposed to elicit sympathy?
KSA needs to big military defeat to put the nail in their casket.
They are losing in Syria.
They lost severely in Yemen.
Thus far they have used mercenaries solely, because if they used their own forces and got beat they’d lose major face, to the point of possibly destabilizing their rule.
The majority of people in KSA are not citizens of that country and owe them zero allegiance. In fact, a lot of those people actively hate the Saudis, which is a good thing.
Look on the bright side, Saudis. Your US Treasuries are now worth more in Riyals, and there will be more demand for your exports, other than oil.
Couldn’t happen to a nicer set of people.
Oh, my goodness this is complicated. It is truly a situation where angels would fear to tread. But, politicians will burst in like a bull in a china shop. Below is a link to an article explaining currency speculation, albeit from a liberal view. But reading the two articles gives you a clue that no political appointee will be able to pick a minimum damage path forward. (What the Saudis have done is order it stopped. But note in the article above that the speculators have already found a way around the new Saudi imposed rules.
http://www.dollarsandsense.org/archives/1998/0598weller.html
Ha ha. Looks to me like they have miscalculated big time and are hopefully going to suffer greatly from it. Couldn’t happen to nicer people.
Something about birds coming back to roost, or was it sowing and reaping?
Pisses me off when I think of all of the blood and treasure we’ve spent for those bums.
Pardon my ignorance but who are they using as mercenaries? I know they are doing go but other than US?
As for the people who work there, zero skin in the game. If the saudis and just about any other nationality on the penesula had to work they would starve to death. Speaking of starving to death, their little project to grow wheat and other stuff has gone pear shaped hasn’t it?
It looks like KSA is headed down the tubes to me or at least for worse times than othes with this price squeeze they executed. They were damned if they did and damned if the didn’t it seems so they poured gasoline on the fire and took as many with them as they could. Exxon just announced they plan to invest $10 billion in Argentina shale over the coming years (how many not specified).
Is this where I start to care?
Just sitting here thinking and spouting off.
I guess you could call this yet another unintended consequence. What else lies in store for them and all their little muzzie friends?
Good lil puppets, murder each other for out amusement.
The only thing SA manufactures is Islamic Trouble. Most of it for the Export Market.
“Pisses me off when I think of all of the blood and treasure we’ve spent for those bums.”
Each politician, regardless of party or nation, does what he thinks is necessary to get through his time in office without destroying himself. I doubt many, if any, think about the larger picture of what condition their nation will be in twenty or thirty years hence. (Or, where it will be six months after they leave office.) Still further, probably nobody is interested in preserving western culture a hundred years from now. (I use to think that was the Pope’s job, but I no longer believe that.)
So, we stumble from one inherited position to another in a seeking-the-easiest path manner. I can’t think of how we could extricate ourselves from the middle east and keep the political world from flying apart with enough force to take us down anyway. More importantly, I see no evidence that anybody is working this problem.
Those Houthis in flip flops wrecked them.
Saudis are going to run out of money and mercenaries
I laugh at the saudi degenerates difficulties. Bwahahahahahaaaaaaaaa.
true. “Saudi” Arabia is the result of the House of Saud, from Riyadh, conquering other tribes and paying them off with oil-money. The Zayidi Shia in the south-west and the twelver Shia in the north-east despise the Wahabbi Saudis and the Hejazis don’t particularly like them either. Other Arabs actively despise the Saudis as well (ask Emiratis or Bahrainis or Omanis and they regularly curse them)
The Saudis used, to my knowledge, both Xi Americans in small numbers, and Columbians in large numbers, as in “the hundreds”.
It is theorized that many of the Columbians were/are former military, but who knows.
Lots of Columbians died.
Columbian, that was it.
Wonder where they will go next when that one gets tapped out and wise to them?
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