Research Article

Analysis of the Impact of Saudi Arabia's Diversification on the US Dollar's Value And International Trade Patterns

Abdulgaffar Muhammad1*, Odiase Bernard Osiahon2, Nana Aishah Abdurrazzaaq3, Adedokun Lateef Adetunji4
1 Department of Business Administration, Ahmadu Bello University, Zaria
2 Department of Business Administration, University of Benin
3 Department of Economics, Al- Hikma Polytechnic- Karu
4 Department of Banking and Finance, CBMS Kaduna Polytechnic
* Corresponding author: abdulgaffarmuhammad@femsbukjournals.org.ng
Published: Jun, 2024
DOI: 10.67894/bjf.2024.avydrtun
Pages: 148-165
Views: 7
Downloads: 3

Abstract

This study examined the impact of Saudi Arabia's economic diversification efforts on the value ofthe US Dollar (USD) and international trade patterns over the period 2002-2021. Utilizing acomprehensive dataset of non-oil exports, USD exchange rates, and trade denominated in non-USD currencies, we apply various machine learning models—Gradient Boosting Regression,Support Vector Regression, and Random Forest Regression—to analyze trends and forecast futurepatterns. Our findings indicated a significant increase in non-oil exports, reflecting the success ofdiversification strategies. Exchange rate analysis shows relative stability of the Saudi Riyal (SAR)against the USD, supporting a stable economic environment. Additionally, the data reveals agradual shift towards trade denominated in multiple currencies, reducing reliance on the USD. Thestudy provides critical insights for policymakers on sustaining economic growth and stabilitythrough continued diversification and strategic financial policies. Recommendations for futureresearch and policy implications are discussed, emphasizing the importance of ongoing supportfor non-oil sectors, exchange rate stability, and trade currency diversification.

Keywords

Economic Diversification Non-Oil Exports Exchange Rates Saudi Arabia Machine Learning Trade Pattern

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How to Cite

Muhammad, A., Osiahon, O. B., Abdurrazzaaq, N. A., & Adetunji, A. L. (2024). Analysis of the Impact of Saudi Arabia's Diversification on the US Dollar's Value And International Trade Patterns. Bayero University Journal of Finance, 1(1), 148-165. https://doi.org/10.67894/bjf.2024.avydrtun

A. Muhammad, O. B. Osiahon, N. A. Abdurrazzaaq, and A. L. Adetunji, "Analysis of the Impact of Saudi Arabia's Diversification on the US Dollar's Value And International Trade Patterns," Bayero University Journal of Finance, vol. 1, no. 1, pp. 148-165, June 2024. doi: 10.67894/bjf.2024.avydrtun

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