Saudi Arabian Riyal
a.k.a. SAR, Saudi riyal
Saudi Arabia's currency, pegged to the US dollar at 3.75 since 1986.
In plain English
Saudi Arabia's currency, pegged to the US dollar at 3.75 since 1986.
The Saudi Arabian riyal (SAR) has been pegged to the US dollar at 3.75 riyals per dollar since 1986. Saudi Arabia sells its oil in dollars and holds enormous reserves, which gives it the firepower to defend the peg.
When oil prices collapse, traders sometimes bet the peg could break, which shows up in the forward market. So far, Saudi Arabia has held the line every time.
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