Saudi Arabia’s central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, Reuters reports, as the Kingdom draws down on reserves to weather the Coronavirus crisis and keep citizens and residents safe.
The Saudi Arabian Monetary Authority said late on Tuesday its net foreign assets, which include securities such as U.S Treasuries and foreign deposits, fell in March to $464 billion, their lowest in 19 years, according to Reuters.
Mohammed Al-Jadaan.
Governments around the world are drawing down on reserves, borrowing, or printing money to keep their economies afloat as entire countries shutter – along with their economies – to prevent the Coronavirus from ravaging their healthcare systems and killing thousands.
Saudi Arabia also noted a $9 billion budget deficit in the first quarter as oil revenues fell from a collapse in oil price and globally weak demand.
“We believe that the magnitude of the drop … reflected both higher government funding to cover the budget deficit and the support packages announced in March to help counterbalance the impact of COVID-19,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank (ADCB), according to the Reuters report.
Saudi Arabia’s lockdown of the Kingdom is one of the strictest globally, with tight curfews and limited windows for citizens and residents to be out of the house. As of April 28, Saudi Arabia is 20th in the world in Coronavirus cases, with 21,402 cases and 157 dead, according to worldometers.info, a tracking site.
