Saudi foreign reserves fall to lowest record in 10 years

SANAA, Jun.01 (YPA) – Saudi Arabia’s war on Yemen has reduced the central bank’s foreign reserve assets by 1.8% month-on-month as of April to 1,652.8 billion riyals ($440.75 billion), down $8.2 billion, its lowest level in more than 10 years.

The kingdom’s foreign reserve assets amounted to 1,684 billion riyals ($448.95 billion) as of last March.

According to a report issued by the Saudi Central Bank on Monday, the decline in foreign reserves in April is the lowest in more than 10 years since November 2010 when it reached 1,644.2 billion riyals ($438.4 billion).

Saudi Arabia’s oil-dependent revenues as a major source of income have been affected by low prices and demand for crude due to the COVID-19 outbreak and the costs of the war in Yemen.

Saudi Arabia lost $50 billion in reserves in March and April 2020, of which $40 billion was transferred to the State Sovereign Fund (Public Investment Fund), to take advantage of opportunities in global markets.

Saudi Arabia does not disclose the geographical distribution of its foreign reserve assets or even the nature of the assets.

Saudi Arabia recorded a deficit of $79.5 billion in 2020, after generating $205.5 billion in revenue from $285 billion in spending.

E.M