#SaudiArabia Moved $40 Billion in Reserves to Sovereign Fund - Bloomberg

Saudi Arabia Moved $40 Billion in Reserves to Sovereign Fund - Bloomberg:

Saudi Arabia transferred 150 billion riyals ($40 billion) from its central bank to its sovereign wealth fund as it went on an investment spree seeking to take advantage of recent market turmoil.

The transfers from the kingdom’s foreign-currency reserves to its Public Investment Fund were made in March and April on an “exceptional” basis, and will “strengthen the investment capacity of the fund,” Finance Minister Mohammed Al-Jadaan said in a statement published by the official Saudi Press Agency on Friday.

The move comes as the world’s largest crude exporter faces exceptional fiscal pressure from a crash in global oil markets. Al-Jadaan said the central bank transfer contributed to a historic drop in Saudi Arabia’s net foreign assets, which fell at the fastest rate in two decades in March, and will also have an impact on April’s central bank data, expected to be released on Sunday.

“This procedure was taken after comprehensive study and taking into consideration the sufficient level for foreign-currency reserves,” Al-Jadaan said. The PIF has an “important role in diversifying and strengthening economic growth,” he said, noting that the fund’s investment returns “will be available to support public finances if needed.”