2023-08-29 10:51:53
The decline reached the lowest level since 2009
site reportedbloombergSaudi Arabia’s foreign reserves decreased by more than $16 billion last month. It is the “largest decline,” according to the site, since oil prices turned negative during the period of the “Corona” epidemic, and Riyadh used its savings to invest in US stocks.
The site indicated that net foreign assets decreased to $407 billion (1.53 trillion Saudi riyals), after recording an increase in the months of May and June, according to the monthly report of the Central Bank, which was published last Monday.
The site commented that this decline reached its lowest level since 2009, pointing out that it came at a time when Riyadh cut oil production in an attempt to support prices.
And “Bloomberg” quoted the chief economist at Abu Dhabi Commercial Bank, Monica Malik, as saying: “The net foreign asset position should improve in September, especially when the first performance-related dividend from Aramco arrives.”
The site stated that Saudi Arabia’s efforts to stabilize oil prices this year through production restrictions led to a significant decrease in revenues from oil sales abroad, indicating that Riyadh faces the possibility of another budget deficit, after it received sudden gains of about $326 billion. in 2022, the first surplus in nearly ten years.
And Saudi Arabia extended, last month, the voluntary reduction of its oil production by one million barrels per day, in an attempt to improve falling prices.
The official Saudi Press Agency, quoting a source in the Energy Ministry, said the cut, which took effect in July, will continue in August with “the possibility of extending it.”
Also read: The growth of the Saudi economy slowed to 3.9% in the first quarter of 2023
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