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FINANCIAL NEWS
Saudi foreign reserves down 1.2 percent in June
08 Aug 2015
(MENAFN) Net foreign reserves at Saudi Arabia’s central bank fell to USD664.5 billion in June, down 1.2 percent from the previous month to their lowest level since March 2013.
Saudi has been drawing down its reserves to cover a huge state budget deficit caused by low oil prices.SANA serves as the Kingdom’s sovereign wealth fund, storing its accumulated earnings from oil exports.
Net foreign assets dropped 9.4 percent from a year earlier in June. They peaked at a record USD737 billion last August.
They were dropping at faster month-on-month rates earlier this year, but last month the government began covering part of its deficit by selling bonds for the first time since 2007.
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