Saudi Arabian Riyal and the U.S.

Discuss the Saudi Arabian Riyal and the U.S. Dollar exchange.

When an unstable economy is experiencing internal crises, a pegged exchange rate is the most advantageous option since it gives people a chance to predict the situation and guarantees reduced inflation rates. Analyze how Saudi Arabia’s fixed exchange rate promotes investment and helps ensure the economy’s stability. Additionally, it enables the population’s purchasing power to remain stable and allows for inflation control.