Saudi Arabia’s net foreign assets rose in May for the firs time since January, Bloomberg reports, a reversal of three months of declines.
Although a relatively small increase of 0.2% or 3 billion riyals ($800 million), the rise is significant in that it represents a halt in a steady decline in the figure for the Saudi Arabia. Net foreign assets stood at $445 billion in May, according to Bloomberg, which cited official government data.
Still, reserves are at the “lowest in almost a decade,” according to the report. Saudi Arabia has tried to rein in spending at home as it faces a double crisis from the Coronavirus outbreak and a major decline in energy revenue.
“The government, which counted on crude for over 60% of its income this year, is now contending with oil output cuts and prices well below its break-even level,” Bloomberg reports, which added that the recent increase in oil prices “has given officials slightly more breathing space,” though recent output cuts made to prop up prices “will result in less of a boost to public finances.”
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