If the collapse in Qatar’s bond and stock markets was not enough to warrant concerns, the Riyal peg is now coming under great pressure as FX forwards crash to their weakest on record
It is clear that this is not just speculation in the forwards market, as the spot market has also been slammed, presumably by outflows, sending it to its weakest since 1998…
This is not the first time the Riyal peg has come under pressure. As the chart above shows, the last time speculators bet against the peg holding, some quick jawboning by the central bank chief saved the day…
This post was published at Zero Hedge on Jun 6, 2017.
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