Abstract

The devaluation of a nations currency can have profound effects on its international trade dynamics. This study examines the impact of currency devaluation on Saudi Arabia’s international trade focusing on the period following significant devaluations of the Saudi Riyal. Utilizing a combination of econometric models and trade data analysis the research investigates how devaluation influences export and import volumes trade balances and overall economic performance. The findings suggest that devaluation has a mixed impact on Saudi Arabia’s trade while it may enhance export competitiveness and improve trade balances in the short term it also raises the cost of imports and can lead to inflationary pressures. The study highlights the importance of complementary economic policies to mitigate negative consequences and maximize the benefits of devaluation. The implications of these findings are crucial for policymakers in Saudi Arabia as they navigate the complexities of global trade in a vol