USD/SAR: Saudi Arabia is losing on forex and bonds
One-year USD/SAR forwards went up to 264.3 points - the highest point since November of 2018. The Saudi currency is currently standing at 3.75 to the dollar in the spots. Most banks usually base their hedging tactics on forwards data.
The Dutch ING bank has released a report, the current regional pegs are unlikely to be disturbed in the near future.
At the same time Saudi’s 30-year bonds which are coming due in 2047 and 2049 dropped in value by 0,8 cents and are now trading at 98.9 and 104.4. Other national bonds from the Gulf region suffer much softer losses. This might be explained by the fact, that Saudi bonds are traded more widely. Larger fiscal pressure might have also played its part.