TY  - EJOU
AU  - 
T1  - Investigating the Possibility of Changing the Saudi Arabian Riyal Exchange Rate Regime
T2  - Humanities and Social Sciences Letters

PY  - 2020
VL  - 8
IS  - 1
SN  - 2312-4318

AB  - This study examined the determinants of the Saudi riyal real effective exchange rate (REER) and the possibility of changing Saudi Arabia’s exchange rate regime from pegged to floating. A regression model was used to investigate the impact of Saudi Arabia’s total reserves, cost of living, money supply, non-oil exports, interbank lending rate, and crude oil production on the REER. The results revealed crude oil production as the only significant determinant: a 10% increase in production will reduce the rate by 1.32%. Although Saudi Arabia is cannot yet change its exchange rate regime, the goals of Vision 2030 are achieved and Saudi Arabia is no longer an oil-dependent economy, a change may be possible.  
KW  - Exchange rate regimes
KW  - Real effective exchange rate
KW  - Currency peg
KW  - Saudi Arabian riyal
KW  - Crude oil revenue
KW  - Vision 2030
KW  - Currency basket.
DO  - 10.18488/journal.73.2020.81.46.61