Saudi central bank draws on foreign reserves

Saudi Arabia's central bank governor said on Sunday the world's top oil exporter was drawing on some foreign reserves but not selling foreign assets to finance a growing budget designed to stimulate the economy.

Saudi Arabia, which pegs its currency to the dollar and is a major holder of US Treasuries, would still see good growth this year in non-oil sectors, even as oil production falls, Mohammad Al Jasser told reporters.

"No, we are not," Al Jasser said in the Saudi capital, Riyadh, when asked if the central bank was selling foreign assets. Analysts said he was likely referring to US government paper.