Bad Saudi PR fuels riyal devaluation talk

Speculation that Saudi Arabia could devalue its currency may owe more to a poor public relations effort by Saudi authorities than to the economic pressures on the kingdom.

Riyadh has the tools available to protect itself as low oil prices push the current account and budget balances of the world's top crude exporter deep into deficit, senior bankers in Saudi Arabia and the Gulf said.

In private conversations with Reuters this week, the bankers - many of whom are in contact with Saudi authorities - said Riyadh may detail a strategy to cope with an era of cheap oil as soon as next month, when the finance ministry presents the 2016 budget plan. The prospect of a riyal devaluation remains far-fetched, they said.  (more)