And if demand in the global economy is too high and oil production does not increase, it may result in a hike in oil prices. The good thing is that Saudi Arabia has indicated its intention to continue to increase production unilaterally.
By contrast, in this crisis, interest rates are at a historic low and the gross international reserves (GIR) are more than sufficient. The GIR reached USD107.72 billion in November. This level is equivalent to 10.2 months’ worth of goods imports and payments of services and primary income. The received doctrine is that three-months’ worth of goods imports is sufficient.