Money Canadian dollar gets whacked after Saudi Arabia reportedly starts dumping the country's assets 'no matter the cost'

07:31  09 august  2018
07:31  09 august  2018 Source:   msn.com

Saudi Airlines to suspend Canadian flights

  Saudi Airlines to suspend Canadian flights TORONTO - The rift between the federal government and Saudi Arabia has prompted the country's state airline to suspend operations in Canada. Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13. Saudi Arabia operates at least two routes to the country, both of which depart from Toronto. Transport Canada did not immediately respond to request for comment on the decision. Saudi Airlines' Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13.

Canadian dollar gets whacked after Saudi Arabia reportedly starts dumping the country ' s assets ' no matter the cost '. Saudi central bank and state pension funds told their overseas asset managers to unload Canadian bonds, stocks, and cash holdings " no matter the cost ," the report said.

According to the newspaper, Saudi Arabia ’ s overseas asset managers were told to dump Canadian equities, bonds and cash holdings “ no matter the cost .” Saudi Arabia is not a major investor in Canada , according to the FT source

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The Canadian dollar fell on Wednesday after the Financial Times reported that Saudi Arabian officials instructed the kingdom's asset managers to dump their holdings of the country's assets.

According to the FT's Simeon Kerr, Saudi Arabia ordered the divestments "no matter the cost" after Canada criticised its arrest of Samar Badawi, a women's rights activist. Saudi central bank and state pension funds told their overseas asset managers to unload Canadian bonds, stocks, and cash holdings "no matter the cost," the report said. The selling began on Tuesday, it said.

The Canadian dollar was down by 0.2% against the US dollar to 1.3096 at 8:59 a.m. ET. It slid to its lowest level in two weeks.

Canada's foreign ministry tweetedFriday that it was "gravely concerned" about the arrests of women's rights activists. Then on Tuesday, Saudi Arabia's national airline Saudia suspended flights to and from Toronto in the feud over the arrest of several prominent human-rights activists.

Trudeau Defends Trump Administration's Decision To Stay Out Of Saudi Dispute .
Prime Minister Justin Trudeau defended the White House's decision to not back Canada in its sudden diplomatic dispute with Saudi Arabia, saying the United States is a sovereign nation free to make its own decisions. "Of course we recognize there are many countries that stand up with similar stances to Canada, but I am never going to impose on another country what their reaction should be, or what their response should be," Trudeau said in Montreal Wednesday.

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