Saudi central bank says currency reserves healthy

Saudi Arabia’s central bank governor said on Saturday that the kingdom’s foreign currency reserves were healthy, representing 80 per cent of GDP, and that the country’s trade deficit could drop this year due to a decline in imports.

“The trade deficit is expected to drop this year and possibly to record as a surplus due mainly to the decline in imports and the rising value of exports,” Ahmed al-Kholifey told state-run Ekhbariya TV.

“The state of foreign reserves … is very good, which accounts for 80 per cent of GDP and this represents a good line of defense to protect the local economy from any external fluctuations,” he said.