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Disadvantages of the pegged exchange rate

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Reference no: EM133124730

Discuss the advantages and disadvantages of the pegged exchange rate. Indicate the main considerations Saudi Arabia faces from a currency perspective (e.g., currency values, interest rates, inflation, and trade issues) that ensue given two scenarios:

-The first scenario is a dramatically declining world oil price.

-The second scenario is a dramatically increasing world oil price.

Reference no: EM133124730

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