The head of Saudi Arabia’s central bank is confident of the strength of the dollar despite a looming debt crisis and government shutdown in the U.S.
Fahad al-Mubarak, governor of the Saudi Arabian Monetary Agency (SAMA), said he believes the U.S. Congress will reach a solution to a crisis that has paralyzed the government.
“We are not worried over the future of the U.S. dollar, its exchange rate or power as an international reserve currency,” al-Mubarak told Al Arabiya. “Our investments are long term and we will keep on investing in American Treasury bonds among other government bonds”.
The banking chief was speaking to Al Arabiya’s Senior Business News Presenter Lara Habib during the annual IMF meeting in Washington.
Al-Mubarak said SAMA’s holdings are balanced between U.S. Treasury bonds and other assets.
He explained that if the American debt ceiling isn’t raised it will definitely have an economic impact although this is very unlikely to happen. Al-Mubarak said the ceiling is likely to be raised as most of the creditors are retirement funds and American institutions.