On Monday, we showed you the dramatic visual evidence [3] in support of Kazakh PM Karim Massimov’s contention that "at the end of the day, most of the oil-producing countries will go into the free floating regime [including Saudi Arabia and the United Arab Emirates because] for the next three to five, maybe seven years, the price for commodities will [not] come back to the level that it used to be at in 2014."
Expectations for an FX regime change in Saudi Arabia in the face of a ballooning budget gap and the first current account deficit in a decade are readily apparent in riyal 12-month forwards and just to drive the point home, have a look at the following, which shows that anticipation for a dirham deval is running at a veritable fever pitch:
[4]
For more on the genesis of the "new era", see "Why It Really All Comes Down To The Death Of The Petrodollar [5]."
