The topic as below:
While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar.
In a critical essay, 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.
Analyze the results you expect from each scenario.
Directions:
– Write an essay that includes an introduction paragraph, the essays body, and a conclusion paragraph to address the assignments guide questions. Do not address the questions using a question-and-answer format.
-APA style should be used
-Font will be: Times roman 12, and double space should be between lines
-At least three scholarly, peer-reviewed journal articles will be used as references (including the below one).
Required Reference:
* Duran, H. E. (2016). Exchange rate movements and its local effects: Turkey case. International Journal of Economics and Financial Issues, 6(2), 442-449.
* Ali, M. (2016). Global imbalances and asymmetric returns to US foreign assets: Fitting the missing pieces of the US balance of payments puzzle. International Review of Applied Economics, 30(2), 167-187.
* Kumhof, M., & Yan, I. (2016). Balance of payments anti-crises. Journal of Macroeconomics, 48, 186-202.
