Nawaf Y. Husein
Faculty Member
Msc, CRP , CLBB
Saudi Training Society Member
Institute of Banking
Saudi Arabian Monetary Agency ( SAMA)
P.O.Box : 10820 Riyadh 11443 Saudi Arabia
Tel : + 966 1 463 3000 Ext. 3825
Fax: + 966 1 466 2368
Mobile : + 966 55 48 44 828
Linkedin
SKYPE : abuhejleh2
Dear Readers,
Please find attached our monthly NCB Saudi Economic Review.
Executive Summary
· As US crude stockpiles rose to 388.1 million barrels in early November, WTI fell to the lowest level in five months and the spread between Brent and WTI of crude oils topped USD14/barrel recently, a level not seen since April
· The Fed decided to continue with its asset purchases pending more evident data on the recovery. Meanwhile, the ECB decided to cut its refinance rate down to 0.25% early November, which exerted downward pressure on the EUR, leaving it on the defensive
· The US debt ceiling brinkmanship early October revealed the loss of gold's status as a "safe haven" where despite the possibility of a US default, gold prices continued to decline
· The advancements in online banking and an increasing use of credit cards through points of sale units indicate that currency outside banks will remain relatively on a controlled upward trajectory
· The strong rise this month is likely to moderate as investors seek to skim capital gains for profit. Nonetheless, the upward momentum is led by fundamentally strong stocks which will encourage a strong foothold for the index
· Banks are likely to maintain their current level of credit expansions given the opportunities arising from an expanding economy
· The lower decrease of imports value relative to weight might be indicative of global inflationary pressures
Best regards,
.
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