Thursday 27 October 2016

WRAPUP 1-Saudis take new steps to ease bank liquidity crunch | Reuters

WRAPUP 1-Saudis take new steps to ease bank liquidity crunch | Reuters:

"Saudi Arabian authorities have taken fresh steps to ease a liquidity crunch caused by low oil prices, suspending the government's local currency bond issues and introducing a new instrument to inject funds into the money market.

The steps could, temporarily at least, ease upward pressure on Saudi money market rates, which have been rising sharply - threatening economic growth - as government debt sales soak up funds from the banking system.

But some bankers said the upward trend in rates was unlikely to end unless the government succeeded in slashing its budget deficit, allowing money to flow back to the private sector."



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