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Their currency is pegged to the USD so its not a huge surprise their central bank prefers it. This of course has not stopped them from issuing euro-denominated
by fuzzylightbulb 5y ago
Their currency is pegged to the USD so its not a huge surprise their central bank prefers it. This of course has not stopped them from issuing euro-denominated bonds and holding other assets.
Either way it makes a ton of sense for them to trade an extremely volatile commodity (oil) for a stable currency. This is what allows them to borrow internationally and attract outside investment. If they floated their own currency it would be a disaster. But yes they absolutely could do this and it would not impact the value of the dollar in any appreciable way. The Riyad would tank and Vision 2030 would be dead in the water.