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Wednesday, 28 June 2017

The mysterious (and continuing) fall in Saudi foreign reserves | GulfNews.com

The mysterious (and continuing) fall in Saudi foreign reserves | GulfNews.com:

"Net foreign assets at Saudi Arabia’s central bank, a measure of its ability to support its currency, look set to fall sharply this year as oil prices slump and Riyadh expands its sovereign wealth fund to invest abroad. They shrank from a record high of $737 billion (Dh2.71 trillion) in August 2014 to $529 billion at the end of 2016 as the government liquidated some assets to cover the huge budget deficit caused by the fall in oil prices. This year, an austerity drive and a partial rebound in oil prices have helped Riyadh make progress in cutting the deficit — which narrowed 71 per cent from a year ago to 26 billion riyals ($6.9 billion) in the first quarter."



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