Saudi Said to Probe Riyal Products

The video discusses the actions of the central bank regarding forwards and options, highlighting past bans and current wide-ranging measures to gather information on market activities. It explores the impact of these actions on the market, including speculation and potential policy shifts. Historical market events are referenced to provide context, and the central bank's focus on risk assessment and governance is emphasized.

What was the central bank's specific action in January regarding financial products?

• They banned all financial products.

• They banned options that allowed cheap hedging on devaluation.

• They imposed no restrictions on financial products.

• They allowed unrestricted trading of forwards.

What has been the effect on the forwards market since the new central bank governor was appointed?

• A complete halt in forward trading.

• Upward pressure and increased speculation.

• No change in the market.

• A decrease in forward bets.

What historical event is compared to the current situation in the forwards market?

• The 2008 financial crisis.

• The oil price drop in January.

• The dot-com bubble burst.

• The housing market crash.

Why is the central bank interested in understanding the market risks related to a potential devaluation?

• To increase their profits.

• To ensure good governance and mitigate systemic risks.

• To encourage more speculation.

• To reduce their involvement in the market.

What is emphasized as important for central banks to mitigate systemic risks?

• Increasing interest rates.

• Understanding financial products and market dynamics.

• Reducing market regulations.

• Encouraging more financial speculation.