Saudi Arabia’s currency fell to its' lowest level in two years as Riyadh faces pressure over the disappearance of journalist Jamal Khashoggi.

Iran Press/Middle East: Saudi Arabia’s currency fell to its' lowest level in two years and its' international bond prices slipped over fears that foreign investment inflows could shrink as Riyadh faces pressure over the disappearance of journalist Jamal Khashoggi

Trade in the forward currency market, used by banks to hedge investments, suggested some institutions were protecting themselves against the risk of capital outflows or U.S. sanctions on Riyadh after the disappearance of Khashoggi, a prominent critic of Saudi authorities, in Istanbul.

But the market moves were smaller than some bouts of instability in the last several years, indicating investors were not as panicked by the Khashoggi case as they were by a plunge of oil prices that began in 2014, Reuters reported.

U.S. President Donald Trump threatened “severe punishment” for Riyadh if it turned out that Khashoggi was killed in the Saudi consulate in Instanbul, as Turkish officials allege. Saudi Arabia has denied this and on Sunday warned it would counter any sanctions with greater ones of its' own.


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Oil prices moved only slightly on Monday as analysts said they doubted Saudi Arabia, the word’s biggest exporter of crude, would risk international isolation and damage its own finances by cutting back exports at a time when it is pushing through reforms designed to create jobs and diversify its economy.

Turkish authorities believe Khashoggi was killed inside the mission by a Saudi state hit-squad, charges that Saudi authorities have consistently denied. 




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Turkish authorities said Khashoggi disappeared after exiting the consulate building.

Riyadh also warned it would retaliate against any sanctions imposed on it over the disappearance of journalist Jamal Khashoggi, in an apparent reaction to US President Donald Trump's threat to punish the oil-rich kingdom. 

"The kingdom affirms its' total rejection of any threats or attempts to undermine it whether through threats to impose economic sanctions or the use of political pressure," an official source said, quoted by state news agency SPA, adding that the country will "respond to any action with a bigger one."

Speaking on Saturday in London, Turkish Foreign Minister Mevlut Cavusoglu said "Saudi Arabia should be cooperating" by giving Turkish prosecutors and experts access to the consulate, regretting that the cooperation had so far fallen short of what Turkey expected.


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