Finance Minister: Riyal to remain pegged to the US dollar

May 31, 2008

Minister of Finance Dr. Ibrahim Al-Assaf and US Treasury Secretary Henry Paulson held a joint press conference in Jeddah today.

Al-Assaf and Paulson met earlier to discuss enhancing financial, economic and investment cooperation between Saudi Arabia and the United States, as well as global economic issues including oil and financial markets.

During the press conference, Al-Assaf stated that Saudi Arabia has no intention of ending the Saudi riyal’s peg to the dollar.

“We have repeated more than once that we have no intention to disengage the riyal and the dollar. We consider the interest of the Kingdom when we take a decision regarding the exchange rate,” the finance minister said.

Al-Assaf also reiterated the Kingdom’s support for stable oil markets, and noted that current high prices are not beneficial to producing or importing countries.

For his part, Secretary Paulson said that he, Al-Assaf and SAGIA Governor Amr Al-Dabbagh agreed on the importance of protecting financial systems from terrorist exploitation.