New York/ Dubai: Saudi billionaire Prince Alwaleed Bin Talal raised the possibility that the kingdom may depeg its currency as the country undergoes unprecedented social, political and financial change. The world’s biggest oil exporter halted payments to contractors last year as it sought to rein in a budget deficit that reached about 15% of gross domestic product. Since its introduction, the riyal’s 3.75-per dollar peg has been instrumental in shielding the economy from the volatility of oil and natural gas. Hedge funds such as PointState Capital and Pershing Square Capital Management have wagered that the fixed rate will be dropped. Saudi Arabia has made several attempts to stamp out currency products that allow speculators to bet against the peg over the past year.

Source: Mint November 17, 2016 12:47 UTC