Publications

Saudi Arabia is an open economy that has adopted a fixed exchange rate regime between its currency, the riyal and the US dollar. However, the recent financial crisis in the US has had a negative impact on Saudi Arabia’s inflation rates and has led to postpone the decision of the GCC countries to adopt a single currency. This paper is investigating the appropriate exchange and inflation rate regimes given the success of inflation targeting in the UK and New Zealand. Therefore, the aim of the research is to identify all factors that influence exchange and inflation rate policies and to draw on the most suitable regime for both policies. Further, the research addresses wider policy implications in this field.