On Wednesday, Saudi Arabia said that there is no room for mediation in the kingdom’s deepening diplomatic dispute with Canada and that Ottawa knew what it needed to do to “fix its big mistake”.
“There is nothing to mediate. A mistake has been made and a mistake should be corrected,” foreign minister Adel al-Jubeir told a news conference in Riyadh.
In an indication that the quarrel may worsen, Jubeir said that the kingdom was still “considering additional measures” against Canada, but did not elaborate.
On Sunday, Saudi Arabia froze new trade with Canada and expelled the Canadian ambassador in retaliation for Ottawa’s call to free arrested Saudi civil society activists.
“The matter is not about human rights; it is a matter of national security,” the minister said.
He said that Canadian investments in Saudi Arabia were still ongoing and would not be affected by the dispute.
Canada’s share of Saudi Arabia’s FX reserves would likely not be enough by itself to hurt the loonie, said Mark McCormick, North American Head of FX Strategy at TD Securities.
“The headlines hit the general populous which I think helped provide a little bit of the spark but to me this is a little bit more technical,” McCormick said. “This is part of this story that shows that CAD has had this massive divergence from typical drivers over the past few days, which has potentially been reinforced by some momentum traders.”