Section Article

Impact of the devaluation on Saudi Arabias global trade
Author(s): Bhagat Saini

Abstract
The depreciation of a countrys currency may have significant impacts on its international trade dynamics. This research investigates the influence of currency depreciation on Saudi Arabias global commerce with a specific emphasis on the time period that followed substantial devaluations of the Saudi Riyal. The study examines the impact of devaluation on export and import volumes trade balances and overall economic performance by using econometric models and analysing trade data. The results indicate that devaluation has a dual effect on Saudi Arabias trade. On one hand it may boost the competitiveness of exports and improve trade balances in the short term. On the other hand it also increases the cost of imports and can result in inflationary pressures. The research emphasises the need of implementing supplementary economic measures to alleviate adverse effects and optimise the advantages of currency depreciation. The significance of these results is of utmost importance for policymakers in Saudi Arabia as they manage the intricacies of global commerce in an unstable economic climate.