|Arab and international|
Economy News _ Baghdad
An analysis showed that Saudi Arabia's foreign reserves were sufficient to cover its imports for four years (48 months), according to August data.
According to an analysis based on Saudi Arabian Monetary Agency (SAMA) data, the ratio of Saudi foreign reserves to imports is 16 times the global average of only three months, meaning that the rate in Saudi Arabia exceeds the global average of 1500 percent.
This huge stock of foreign exchange gives the Saudi economy considerable strength to support exchange rate policy and economic activities, according to "economic".
These reserves also help finance part of the budget deficit resulting from falling oil prices, debt repayment and imports of goods in exceptional circumstances. The national economy can also absorb economic shocks in general, whether local or global.
SAMA's reserve assets include gold, special drawing rights, IMF reserves, foreign exchange and deposits abroad, as well as investments in securities abroad.
Saudi Arabia's reserves abroad amounted to 1.83 trillion riyals at the end of August, while imports in the same month amounted to about 38.1 billion riyals.
Saudi Arabia's foreign reserves are enough to cover imports for four years (48 months).
The rate of coverage of foreign reserves of imports in August rose from the levels of the month of July, which was about 3.6 years (43 months), exceeding the global average by 1331 percent.
The improvement in August came in comparison to July of the same year, due to a drop in imports much higher than the decline in foreign reserves.
Imports fell by 11.8 percent last August, worth about 5 billion riyals, compared to July's 43.2 billion riyals.
While foreign reserves fell in August by 1.4 percent, worth about 26 billion riyals, compared to July of the same year, which amounted to 1.86 trillion riyals.
The rate of coverage of foreign reserves for Saudi imports since the beginning of this year has grown as follows: 3.7 years (45 months) in January, 4.4 years (53 months) in February and 4.1 years (49 months) in March.
The average foreign exchange coverage for imports was 3.7 years (44 months) in April, 3.6 years (43 months) in May, 4.8 years (57 months) in June, 3.6 years (43 months) in July, To four years (48 months) last August.
Foreign reserves of Saudi Arabia cover imports for 4 years
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