Saudi Arabia is spending cash like there was no tomorrow, but the party cannot go on forever. According to knowledgeable Bloomberg sources, government officials in Saudi Arabia have begun capital controls, telling banks in the country to stop the sale of currency futures contracts betting against the Saudi riyal. The biggest global oil producer has maintained a peg between riyal and the dollar for many years, but as oil revenue drops due to dramatically lower prices for crude oil, many financial professionals began to question Saudi Arabia’s ability to keep the riyal – dollar peg in place. The Saudi Arabian Monetary ... (full story)