Abstract

Currency devaluation is one of the most studied economic instruments in international trade policy particularly for countries that rely heavily on import–export dynamics to stabilize domestic markets and strengthen competitive advantage. Saudi Arabia positioned as a large oil-exporting nation with deep global financial linkages provides a significant context for understanding the short-run and long-run implications of devaluation on trade flows price structures and macroeconomic stability. The Saudi economy has historically operated under a fixed exchange rate system anchored to the US dollar making devaluation a highly sensitive issue with potential consequences for fiscal planning import dependence export diversification and foreign investment. The present study provides a comprehensive analysis of how devaluation—real or hypothetical—would affect Saudi Arabia’s international trade ecosystem. It examines theoretical foundations of devaluation assesses structural features of the Saudi