EFTA Document EFTA01459611

12 January 2016 FX Blueprint: Forever Young Theme #13: Can SARdines - Stay away from SAR peg trade ▪ Saudi Arabia still has time to defend the dollar peg but they must act more decisively on fiscal matters. Wait for better levels before buying 12m USDSAR. • Reserves are nearly equal to GDP and twice the M1 130 money supply. Debt was far higher and reserves far lower during successful defenses in 1998-2003. 120 Both falling oil prices and a rising dollar suppress 110 Saudi inflatio