Saudi foreign reserves rise in October as budget deficit outlook improves

Saudi foreign reserves rise in October as budget deficit outlook improves:

"The Saudi Arabian central bank’s foreign reserves rose in October for the first time since June, in a sign that higher oil prices and government austerity steps are reducing pressure to draw down the assets, official data showed on Tuesday.

The bank’s net foreign assets rose by $8.3 billion from September to $485.9 billion last month; they shrank by 9.3 percent from a year ago. The reserves peaked at $737 billion in August 2014 before starting to drop as oil prices plunged.

The government has been liquidating the reserves to cover a big budget deficit caused by low oil export receipts, and to build up its top sovereign wealth fund, the Public Investment Fund, which is becoming a key force in developing the economy."



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