"ملف ١١/٢ يوميّات وتقارير: سلسلة الجزيرة العربية" [ظ‎‎١‎٠‎٦] (٢٢٢/٢١٢)

42
2. Mr. Calvert thinks that there must be in fact a shortage of silver
coinage and he quotes as evidence of this the importation by the Saudi
Government of 400,000 Indian rupees last May, and further importations
of silver rupees which have apparently taken place since then.
3. Mr. Calvert reports that there has been keen appreciation of the
silver riyal recently. As you know, the Saudi Government attempted at
one time to maintain an artificial rate of 10 rivals to one gold pound, but
the rate steadily depreciated, until at the end of 1933 it was over 24 riyals
to the gold pound. The following figures show, however, the appreciation
which has taken place this year in the selling rates of exchange for riyals
to the gold pound :—
: [ *
1st April—Riyals 21.
1st May—Riyals 20^-
1st June—Riyals 20.
30th June—Riyals 17, 18.
4. In terms of Egyptian pounds the riyal rate apparently rose after
the Pilgrimage to 11, and then for one day to 81, falling subsequently to
40 rivals, 8 piastres, and then steadying to 10 riyals, 1 piastre at the end
of July where it still remains. This is the more remarkable as the rate
normally falls after the Pilgrimage below the usual figure of 14-15 riyals
to the Eygptian pound.
5. When attention was first drawn to the steady appreciation in the
vaule of riyals, observers were uncertain as to the exact cause behind it,
but it now looks as though the main influence might in fact be a shortage
of silver coinage. Mr. Calvert reports, however, that the reasons for this
shortage are obscure. He has not heard any stories of the export of silver
coinage and he finds it difficult to believe rumours of hoarding of coinage
for sale at a profit during the next pilgrimage. The rates for Saudi cur
rency normally rise when the pilgrimage season begins, but do not generally
do so for other reasons before then.
6. As Mr. Rendel mentioned in the course of your interview with him
on 7th August, we are obliged by our standing instructions to ask yon to
be so good as to refund the cost of the telegram despatched at your request
to Jedda, and of the reply thereto, and our Finance Department will m due
pourse send you the customary official request for repayment.
(55)
(Received on Uth September 1935 with Political Secretary's letter No. 35,
K dated 29th August 1935.)
T T7TTFT? FROM THE FOREIGN OFP(TCE, TO LORD CASTLESTEWART, NO- P. Z.-
LETTER FR .1 ^ 3 ^ DATED THE 2 3r D AUGUST, 1935.
I am writing in continuation of my letter No. E.-4820/002/25 of l3tfi
'August rs No (54)1 to let you know that we have received some further 1
information from our Charg6 d’Affaires at Jedda regarding the rate of ex
change for silver riyals in Saudi Arabia.
Mr Calvert reports that the shortage of riyals is now considered by
e ood authorities to be artificial and due to hoarding. The rate of exchange
ST however, been steadier since August 9 th and on August 18 h it was
$0 riyafe 2 piastres to the Egyptian pound 1 and 16i riyals to the gold pound.
1
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