Saudi Arabia has no plans of changing peg to US dollar

October 21, 2016

Jeddah, Oct 21: The government has no plans to change Saudi Arabia’s exchange rate, Finance Minister Ibrahim Al-Assaf told a television program early Thursday.

Saudi

The MBC network’s program was broadcast hours after the Saudi government sold $17.5 billion of bonds, the largest emerging market debt sale ever, in its first international bond sale.

Analysts, quoted by Reuters, believe the bond will allow Saudi Arabia to slow the drawdown of its foreign assets to pay its bills, which is a focus of recent speculative pressure on the riyal.

Al-Assaf praised the government’s economic plans and reforms drive, saying it had impressed US President Barack Obama among others.

The international debt issue did not include Islamic bonds; Al-Assaf said the government planned to issue sukuk in future as one way to cover its budget deficit.

The bond issue prospectus noted that Saudi Arabia might eventually abandon the peg of its riyal currency to the US dollar, but the minister said that was included for legal reasons and the government has no intention of changing the exchange rate.

The Saudi stock market rose sharply as bank shares rallied after the mammoth international bond sale.

The bond issue was hailed as historic by investors.

Saudi Arabia’s Tadawul All-Share Index gained 2.3 percent, with Samba Financial shares jumping 5.2 percent.

Fitch Ratings recently noted that banks in Saudi Arabia and Qatar are better placed than GCC peers to cope with an eventual deterioration in asset quality brought about by a prolonged period of weak oil prices.

Commenting to Arab News, Eric Dupont, senior director, financial institutions, gave two key reasons for this assessment.

Dupont said: “Firstly, an operating environment that provides banks with lots of good lending opportunities and secondly strong loss absorption capacity in the form of excess loan loss reserves, excess capital and earnings generation.”

Speaking on the MBC program, Al-Assaf also said that delays in state payments to construction firms are due to “technical reasons” and the payments will increase in the coming period. He said payments to companies were now “stable” and would rise.

Mohammad Al-Tuwaijri, deputy minister of economy and planning, said Saudi Arabia would have faced bankruptcy in three to four years if it had not imposed austerity policies.

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News Network
April 14,2024

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Tehran: Iran’s Islamic Revolution Guards Corps (IRGC) has launched “extensive” retaliatory missile and drone strikes against the occupied territories in response to the Israeli regime’s terrorist attack of April 1 against the Islamic Republic’s diplomatic premises in the Syrian capital Damascus.

The Corps announced launching the strikes in a statement on Saturday night, defining the mission as "Operation True Promise."

“In response to the Zionist regime’s numerous crimes, including the attack on the consular section of Iran’s Embassy in Damascus and the martyrdom of a number of our country’s commanders and military advisors in Syria, the IRGC’s Aerospace Division launched tens of missiles and drones against certain targets inside the occupied territories,” the statement read.

Iran's Defense Minister Brigadier General Mohammad Reza Ashtiani, meanwhile, warned that “Whatever country that could open its soil or airspace to Israel for a [potential] attack on Iran, will receive our decisive response.”

The Israeli attack had resulted in the martyrdom of Brigadier General Mohammad Reza Zahedi, a commander of the IRGC's Quds Force, his deputy, General Mohammad Hadi Haji Rahimi, and five of their accompanying officers.

The terrorist attack drew sharp condemnation from senior Iranian political and military leaders, who vowed "definitive revenge."

During a speech in Tehran on Wednesday after leading the Eid al-Fitr prayers, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said the Israeli regime “must be punished and will be punished” for the deadly strike on the Iranian diplomatic premises.

The Leader added, “The evil Zionist regime committed another mistake ...  and that was the attack on the Iranian consulate in Syria. The consulate and diplomatic missions in any country are considered to be the territory of that country. When they attack our consulate, it means they have attacked our soil."

In a subsequent statement, the IRGC said the retaliation came after 10 days of "silence and neglect" on the part of the international organizations, especially the United Nations Security Council, to condemn the Israeli aggression or punish the regime in line with Article 7 of the UN Charter.

Iran then resorted to the retaliatory strikes, the Corps added, "using its strategic intelligence capabilities, missiles, and drones" to attack "targets of the Zionist terrorist army in the occupied territories, successfully hitting and destroying them."

The statement, meanwhile, warned the United States -- the Israeli regime's biggest supporter -- that "any support or participation in harming Iran's interests will result in a decisive and regrettable response by the Armed Forces of the Islamic Republic."

"Furthermore, America is held responsible for the evil actions of the Zionist regime, and if this child-killing regime is not restrained in the region, it will bear the consequences," it noted.

The Corps concluded the statement by cautioning third countries against letting their soil or airspace be used for attacks against the Islamic Republic.

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News Network
April 7,2024

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Israel's relentless aggression against the Gaza Strip has now stretched over six months, and shows no sign of abating despite international calls for a ceasefire.

Israel launched the war on Gaza on October 7 after the Palestinian resistance movement Hamas waged the surprise Operation Al-Aqsa Storm against the occupying entity in response to the Israeli regime's decades-long campaign of violence against Palestinians.

At that time, the Israeli regime said attacking Gaza had two goals: eliminating Hamas and bringing back the hostages taken by the resistance group to Gaza. None of them have been achieved so far.

About 130 of the 250 Israeli captives taken during Operation Al-Aqsa Storm are still in Gaza after a provisional truce deal in December saw the exchange of a number of prisoners between the two sides.

Death toll

The conflict in Gaza has taken a devastating toll on Palestinians, with over 33,200 people, including 13,800 children, having lost their lives in 180 days of war, according to the Gaza Ministry of Health.

On top of that, around 76,000 people have been wounded – about four out of every 100 people in Gaza. The Palestine Red Crescent Society said this week some 1,000 children in Gaza have lost one or both of their legs.

A record-breaking 176 UN staff members and seven foreign aid workers have been killed in Gaza since October 7.

The Israeli army has killed the largest number of journalists of any modern conflict and detained more than 24. More than 140 journalists have been killed during the six months of war in the Israeli military's raids, bombardments and missile attacks across the Gaza Strip.

The humanitarian situation in Gaza has worsened day by day as the Israeli army continues to prevent aid from reaching the region, resulting in starvation being utilized as a tactic of warfare as over a million are at risk of starvation, with international groups warning of an “imminent” famine.

At least 27 Palestinians have already died from malnutrition and dehydration, according to international NGOs.

Displacement

More than 80 percent of Gaza’s population (Over 1.9 million Palestinians) have been intentionally displaced as the Israeli military ordered Palestinians to “go south” from the start of the war.

Some 1.4 million people are believed to be sheltering in Rafah, a small city on Gaza’s southern border with Egypt which is being bombarded by the Israeli forces every day as they have left no safe zone for the Palestinians to live.

Infrastructure damage

The estimated $18.5 billion in damage has affected public service infrastructure, resulting in 26 million tons of debris and rubble.

Over 290,000 housing units, equivalent to 62 percent of all homes in Gaza, have been damaged or destroyed by the war, leaving more than a million people homeless.

Only a fraction of hospitals, 10 out of 36, are operational following severe damage, leading to overwhelming strain on their limited resources.

Al-Shifa Hospital, the largest medical facility in Gaza, has been left severely damaged and burned after enduring a relentless two-week-long siege. The compound, which witnessed the loss of at least 400 lives and the arrest of hundreds, now faces a dire situation.

With an acute shortage of medicine and healthcare professionals on the brink of exhaustion and starvation, the majority of patients in Gaza are unable to receive the treatment they desperately need.

The scarcity of resources has forced medical teams to carry out operations and amputations without the availability of anesthetic, further exacerbating the already dire circumstances.

Political resolutions

On March 6, South Africa filed an “urgent request” with the International Court of Justice (ICJ) and requested for additional provisional measures issued on January 26.

In January, the ICJ ordered Israel to refrain from any acts that could fall under the Genocide Convention and ensure its troops commit no genocidal acts against Palestinians in Gaza. Israel described the genocide allegation as baseless.

On Friday, the United Nations Human Rights Council adopted a resolution, calling for a halt to all arms sales to Israel, and for the regime to be held accountable for possible war crimes in the Gaza Strip.

Moreover, the UN Security Council adopted a resolution last month, demanding an “immediate ceasefire” for the Muslim holy month of Ramadan. The resolution is the first to be approved by the council after three previous attempts during the past five months of war were vetoed by the US.

Meanwhile, during the months of war, protests around the world have been held in support of Palestine, calling for an immediate ceasefire and halt to arms sales to Israel.

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News Network
April 14,2024

Qatar and Kuwait have banned any use of their airspace and air bases for attacks against Iran amid heightened tensions between Iran and the Israeli regime following an Israeli attack early this month on an Iranian diplomatic mission in Syria.

Reports on Saturday indicated that both Qatar and Kuwait had issued directives to the United States stressing that the US military will not be allowed to use air bases in the two countries for carrying out any potential airstrikes on Iran.

Qatar and Kuwait have also indicated that their airspace will not be available for any military action against Iran.

The US has military aircraft at the Ali Al Salem Air Base and Ahmed Al Jaber Air Base in Kuwait. The Al Udeid Air Base in Qatar is also the largest US air base in the West Asia region.

The directives issued by Iran’s two Arab neighbors come amid reports showing that Iran is preparing to respond to an Israeli airstrike that killed two of its senior military commanders in its consulate in the Syrian capital Damascus on April 1.

Washington has urged Iran to deescalate while saying that it will defend Israel in case it is attacked.

Iran, which has no direct relations with the US, has called on regional Arab countries to advise the US not to interfere if Israel is attacked.

Countries have been wary of a major confrontation in the region more than six months into an Israeli onslaught on the Gaza Strip.

Reports show they have already limited the ability of the US to use their airspace and air bases for attacks on resistance groups that are allied with Iran and have been attacking Israeli and US interests in the region since the start of the Israeli aggression on Gaza.

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