By Arab News, Jeddah, Saudi Arabia
June 10--JEDDAH -- Economists have warned Saudi investors that mounting US debt and a weakening dollar is putting at risk a traditional safe haven for investment: UStreasury bonds, which make up 70 percent of Saudi investment in the US.
Economists told Al-Eqtisadiah, a sister publication of Arab News, they believed that the hegemony of the US dollar in the world economy would not last long in light of $8 trillion in US debt.
Financial expert Raja Al-Marzouki said the declining US dollar would have a negative impact on Saudi investments abroad.
"As a result all investments and deposits would diminish, affecting Saudis' income, purchasing power and profitability," he said, predicting the decline of the dollar would continue. "Saudi investors must be aware of the danger posed by investing in a single currency."
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