International Finance Discussion
Description
Saudi Arabia has recently increased its degree of openness; hence it engaged into higher level of international (financial & non-financial) activities. Briefly discuss the following along with providing one example:
- How would this affect our economy?
- How would this affect our BoP? Current account & financial account.
- How would this affect our exchange rate? Since it is pegged exchange rate regime, increasing level of international trade will affect the exchange rate, so how would the Saudi Central Bank react to this?
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