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Saudi Arabia is struggling with rising U.S. rates as it tries to strike a balance between boosting growth and averting capital flight that would put pressure on the riyal's currency peg.Saudi Arabia raised its benchmark rate on March 15 for the first time since 2009, preempting the U.S. Federal Reserve increase after Saibor fell below its equivalent London rate for dollars, posing a risk of capital flight.The difference between Saudi's three-month interbank offered rate and Libor has narrowed to 5 basis points since the Saudi rate increase, from 19 basis points earlier this month, the biggest gap in a decade.Saibor has risen 36 basis points this year to 2.26 percent, above the repurchase rate of 2.25 percent.
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