What are the reasons for this stability

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The Saudi Riyal remains stable in comparison to the US Dollar.

1. What are the reasons for this stability? Explain with examples.

2. Do you expect that current revenue and expenditure patterns will affect the value of the Saudi Riyal in relation to the US Dollar? Explain with examples.

3. How does the Theory of Purchasing Power Parity affect your answer?   What other factors does it suggest will affect the value of the Saudi Riyal? Explain with examples.

Reference no: EM13987328

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