Bloomberg, Business Insider
A Rare Occurrence In The Saudi Currency Market Tells You That Trouble Is Brewing In The Middle East -- Business Insider
An important shift is developing in Saudi Arabian currency derivatives markets as Iran becomes engulfed in populist protests amid hyperinflationary pressures and armed conflict breaks out between Turkey and Syria, heightening concerns about tensions in the Middle East.
The 12-month forward rate on the Saudi Arabian riyal – or the difference between how many riyals traders think a dollar will be able to buy a year from now and how many riyals a dollar can buy today – has been hovering just above zero for the past two weeks.
Read more ....
My Comment: To me .... this is an indication that some Saudi Arabia watchers are expecting the Arab Spring to arrive, coupled with the unrest and turmoil for change that it will bring. And for those who have "money in the game" ..... they are showing to the rest of the world that they are now betting on it.
No comments:
Post a Comment