Saudi September Foreign Reserves Drop to Near Three-Year Low - Bloomberg Business

Saudi September Foreign Reserves Drop to Near Three-Year Low - Bloomberg Business:

"Saudi Arabia’s net foreign assets dropped for the eighth month in September as the plunge in oil prices prompt the government to draw down on the financial reserves it accumulated over the past decade.
Net foreign assets declined $7.7 billion to $646.9 billion, the lowest level since November 2012, the Saudi Arabian Monetary Agency said in its monthly report. The central bank’s investments in foreign securities plunged $23 billion, the data show, taking the drop since February to more than $90 billion. Bank lending to private businesses grew 7.1 percent, the slowest pace since April 2011, the data show.
The biggest Arab economy may run out of financial assets needed to support spending within five years if the government maintains current policies, the International Monetary Fund said this month. Authorities are already considering spending cuts and the government is selling domestic bonds for the first time since 2007 to shore up public finances."



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