Saudi Arabia’s net reserves fall to $410bn, lowest since 2010
The central bank said the net foreign assets dropped to SAR1.54tn in April from SAR1.57tn the previous month
Saudi Arabia’s net foreign assets fell to $410bn (SAR1.54tn) in April, the lowest since January 2010, even as the government forecasts a second annual budget surplus this year.
Foreign reserves fell from SAR1.57tn the previous month, according to the central bank’s monthly report published on Sunday. It’s the fifth month that reserves have declined, the longest falling streak since early 2019.
Saudi Arabia returned to the debt market earlier this month by selling $6bn of Islamic bonds. The kingdom already reported a deficit of SAR2.91bn in the first quarter of the year.
Monthly Bulletin Apr 2023.https://t.co/jrltuTSh5K#SAMA
— SAMA | البنك المركزي السعودي (@SAMA_GOV) May 28, 2023
The International Monetary Fund forecasts the world’s top crude exporter will run a budget deficit of 1.1 per cent of gross domestic product this year, a view that’s at odds with the government’s expectation for a second straight surplus it last estimated at SAR16bn.
The Washington-based lender hiked its estimate of the oil price Saudi Arabia needs to balance its budget this year to over $80 a barrel. The kingdom doesn’t reveal an oil price assumption in its budget.
