Arab Today, arab today saudi riyal \remains unaffected by dollar depreciation\
Last Updated : GMT 05:22:36
Arab Today, arab today
Arab Today, arab today

Saudi riyal \'remains unaffected by dollar depreciation\'

Arab Today, arab today

Arab Today, arab today Saudi riyal \'remains unaffected by dollar depreciation\'

Jeddah - Arabstoday

During a seminar hosted by Sidra Capital, leading Turkish Economist and Strategist Erda Gercek reiterated that the Saudi currency would not be affected by the depreciation of the US currency. He emphasized that the currency exchange prices in the Kingdom and the world will remain stable thanks to dollar reserves. Gercek\'s made the statement at the seminar during which the demise of the dollar and its future as world\'s reserve currency was presented. Gercek gave an overview of the global financial and economic situation and provided further insight into the future of the dollar and its impact on the riyal. Hani Baothman, CEO of Sidra Capital, said: \"We hosted this seminar in order to shed light on the current volatility in the market as a result of the euro crisis which has ballooned with each passing day, in addition to the festering economic crisis in the United States as a result of its political indecision to tackle the mounting budget deficit and the swelling of its public debt.\" He added: \"Our aim is to connect with our shareholders and stakeholders in order to provide them with the most relevant and most objective information as it pertains to the persistent doubts about the ability of the US administration to face the challenges ahead and what it means to the position of the dollar as a reserve currency and how that might affect its position against the worlds\' major currencies.\" In its New World Economy Report, published by the IMF, the report predicted that the dominance of the dollar in the international financial system will end by 2025, and it will be replaced by a tri-polar system consisting of currencies including the greenback, the euro and the Chinese yuan. IMF report stated that this would happen when the dollar loses its position as an undisputed global currency by that year. Gercek said the dollar remained the world\'s main reserve currency and that it would remain so for the foreseeable future. \"This is based on structural reasons such as the size of the American economy, which is still the largest in the world, the depth and breadth of America\'s financial markets, which is still unchallenged and its liquidity remains unsurpassed. More importantly America\'s institutional framework and its robust strength are still superior, especially in the areas of governance and the rule of law, which are paramount if economic activity is to be created and sustained over the long term,\" he said. \"US can sustain larger trade deficits than any other country as capital inflows are almost guaranteed,\" Gercek said. \"Reserve currencies come and go, but there is no obvious one to replace the dollar yet. This does not mean the dollar is on a constant depreciation path. Currencies are mostly part of the solution not the problem. And weak dollar is exactly what the doctor ordered for the US economy,\" Gercek said. With regards to America\'s political standing, its dominance coincided with its emergence as the world\'s sole and undisputed power with the collapse of the Soviet Union in 1990. As such, and after the Bretton Woods system that came into existence in 1946, the dollar replaced the sterling pound as the world\'s reserve currency. However, with the slow rise of other regional powers, notably China, India and Brazil, a multi-polar world order is likely to emerge over the course of the next few decades. With that rise and as a result of America\'s persistent budget deficits, mounting public debt and balance of payment problems, coupled with political indecision to solve its chronic structural problems, the supremacy of the dollar will likely slide in tandem with its retreating political and financial dominance. The American dollar is described as Triffin Paradox, which refers to the conflicts of interest that occurs as a result of short-term domestic and long-term international economic objectives, given its position as a national currency and the international reserve currency. It is used as an international source of liquidity; as such the United States needs to run trade deficits to provide liquidity to the rest of the world and this has helped global growth over the last 30 years. Global imbalances and low US savings were obvious side effects of this policy. Gercek discarded the rumors that America is printing more money. He indicated that the US currency\'s strong position comes from exchange of reserves in dollar between central banks and commercial banks. Thus, the American government is simply balancing its inflows and outflows. He clarified that emerging markets cannot simply be bystanders to this process by hinting or engaging in a “currency war.” They were part of the problem during the buildup to the global imbalance. Now they need to be part of the solution and accept that the old model of mercantilist growth is no longer an option. Interconnectedness will make sure \"one for all and all for one.\" Failure to see this will have dire repercussions for all.

arabstoday
arabstoday

GMT 16:08 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 04:42 2017 Saturday ,14 October

Egyptian Bourse gains EGP 2.6 bn

GMT 04:32 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 20:52 2017 Thursday ,12 October

Egyptian Bourse loses EGP 3 bn

GMT 13:12 2017 Thursday ,12 October

Bahrain Bourse daily performance

GMT 11:06 2017 Thursday ,12 October

Wall Street ends at fresh records; Spanish stocks gain

GMT 21:13 2017 Wednesday ,11 October

Bahrain Bourse daily trading report (update)
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi riyal \remains unaffected by dollar depreciation\ Arab Today, arab today saudi riyal \remains unaffected by dollar depreciation\

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi riyal \remains unaffected by dollar depreciation\ Arab Today, arab today saudi riyal \remains unaffected by dollar depreciation\

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 3,250 people killed in Raqqa battle

GMT 03:49 2017 Wednesday ,18 October

3,250 people killed in Raqqa battle
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday