EFTA Document EFTA01379419

22 December 2017 EM Currency Handbook 2018: Still Fuel in the Tank Regulatory framework and approach • The Saudi Arabian Monetary Agency regulates exchange rate policy. and is also responsible for implementing monetary policy (http://www.sama.gov.sa). • SAMA has two policy rates, the official repo rate and the reverse repo rates. Banks can tender government T-bills to the repo in exchange for SAR funding. SAMA also uses changes in reserve requirements to tighten or loosen credit conditions. • The Saudi Riyal is a fully deliverable and convertible currency. Onshore SAR products FX spot market Avg. ticket size: USD 25 - 100mn Bid/ask spread: SAR 0.0004 Avg. daily volume: USD 1.3bn Ref. source: Reuters Page <SAMA01> Trading hours: 7:30-17:00 London FY for wetde:swops Avg. ticket size: USD 25mn (FX forwards); USD 25mn (FX swaps) Liquid tenors: <5Y Bid/ask spread: 0.0020 - 0.0040 (1y) Avg. daily volume: USD 1.5-3.0bn Ref. source: Reuters Page <DBMEFVVD> FX options Avg. ticket size: USD 50mn Liquid tenors: <1Y Bid/ask spread: 0.6 vol IRS market Avg ticket size: USD 5-10k DV01 Bid/ask spread: 10bps 5Y Fixing: 3M SAIBOR Ref source: <SAIBOR=> Deutsche Bank Securities Inc. Page 81 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0076884 CONFIDENTIAL SDNY_GM_00223068 EFTA01379419