Investment in foreign securities recorded a monthly increase for the first time in 2015, an indication that pressure continued to be relieved off foreign reserves as the main deficit financing tool, according to a recently released report by Riyadh-based Jadwa Investment.
Additionally, net monthly withdrawals from government accounts continued to be small in August compared to the first half of 2015, Jadwa found. Bank holdings of government bonds showed a sharp rise in August, reflecting the new government financing strategy.
Graphic via Jadwa Investment.
“All three government accounts recorded small negative net monthly changes. Bank holdings of government bonds showed a sharp rise in August, reflecting the new government financing strategy,” Jadwa said. “SAMA net foreign assets stood at $659 billion at the end of August. Investment in foreign securities recorded a monthly increase for the first time in 2015 indicating that pressure continued to be relieved off foreign reserves as the main deficit financing tool. This reflects in part the positive impact of the government’s new financing strategy.”
[Click here to read the full report from Jadwa in English] • [Click here to read the full report from Jadwa in Arabic]
