Saudi Arabia’s net foreign assets fell to 1.572 trillion riyals ($419 billion) in March, even as oil giant Aramco increased its dividend the same month.
Foreign reserves fell from 1.625 trillion riyals the previous month, according to the central bank’s monthly report published on Sunday. They currently stand at their lowest level since July 2010, according to data compiled by Bloomberg.
“The drop in SAMA’s FX reserves came in parallel to a drop in government deposits at SAMA,” said Mohamed Abu Basha, head of macroeconomic research at Cairo-based investment bank EFG Hermes. That’s an “indication the government had heightened expenditure needs during the month.”
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