‘Saudi private sector set to grow’
Central bank governor says global effort required to assess the risks, impact of crypto-currencies
Saudi Arabia’s non-oil sector of the economy is still healthy and the private sector will continue to grow, stimulated by reforms, the Saudi central bank governor said yesterday.
Ahmad Al Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), also said international cooperation was needed to assess the risks and impact of crypto-currencies.
“We warned the public that be careful there is no legal framework protecting you and we need really to understand more and this is what you hear in the international area when you go to meetings, they have the same feeling,” he said at an investment conference in Riyadh..
“I think it means more international efforts to assess the impact of crypto-currencies on financial stability and the financial system in general,” he said.
Saudi reserves
The pace at which Saudi Arabia’s foreign reserves are falling has slowed and any further fall will depend on government fiscal policy, the Saudi central bank governor further said.
He added that he was very comfortable with the current level.
Al Kholifey said in comments on government policy: “I don’t know what is their choice of either drawing their reserves or borrowing. Of course, they are reducing now the deficit which is good. It’s more disciplined fiscal policy right now.”
He added that he would only stimulate exports via a flexible exchange rate after the economy was more diversified but it was not at that stage yet, so exchange rate policy had to remain stable.
The riyal currency is now pegged to the US dollar.