Devaluation in Saudi Arabia fails to boost trade balance, exchange rate stability recommended.
The article examines how devaluation affects foreign trade in Saudi Arabia from 1970 to 2015. The researchers found that world income helps improve Saudi Arabia's trade balance. Devaluation doesn't really help in the long run, and appreciation has significant effects. In the short term, appreciation shows an inverted J-curve, while devaluation shows an S-curve. The study suggests maintaining the exchange rate instead of devaluing it based on these results.