BUSINESS | Saudi FX Reserve Down Sharply In April To Back Wealth Fund Investments

RIYADH | SAUDI ARABIA – Saudi foreign reserves dropped sharply in April for a second consecutive month as the kingdom used tens of billions of dollars to back investments of its sovereign fund abroad while its economy is hit hard by the new coronavirus.

Saudi Arabia, the world’s largest oil exporter, is suffering from historic price lows and measures to fight the pandemic which have hurt its non-oil economy.

Facing a collapse in oil revenue and  a sharp widening of its deficit this year, between March and April it has transferred $40 billion from its foreign reserves to the Public Investment Fund (PIF) to back investments abroad to maximize returns.

Net foreign assets  of the Saudi Arabian Monetary Authority (SAMA) dropped to $443.75 billion in April from $464.64 billion in March, according to SAMA data published late on Sunday.

Total reserves assets, which include foreign currency and deposits abroad as well as investment in foreign securities, dropped by nearly $25 billion month-on-month in April.

‘Excluding the one – off transactions were part of the reserves were transferred to PIF to utilize the opportunity of investing in international markets under current circumstances, we are not seeing any extraordinary outflows in terms of foreign reserves’, Finance Minister Mohammed Al-Jadaan told Reuters.

SAMA’s net foreign assets had dropped by nearly $27 billion month-on-month in March, their fastest rate in at least 20 years.

The reserves depletion coincides with a shift to austerity last month when the country announced a tripling of value added tax (VAT) and the suspension of a cost of living allowance for state employees, in an attempt to shore up its finances.

‘PIF constantly looks for long – term compelling investment opportunities at attractive prices’, a spokesman of the fund said in an emailed statement to Reuters.

‘The current market environment presents a number of such opportunities, including in sectors and companies that are well positioned to drive economic growth and value creations moving forwards beyond the current crisis’.

The fund, with assets estimated at over $300 billion, said one of its sources of funding included capital injections made by the government.


HEALTH | Strength Your Immune System Amid Coronavirus: Experts Offer Simple Tips

This fall and coming winter, protecting yourself against novel coronavirus in addition to the flue are imperative as the pandemic rages on. Deaths from the virus in the world surpassed 980,000 earlier this week, and dozens of states across the world are seeing a rise in COVID-19 cases. While the world’s top infectious disease expert, … Continue reading HEALTH | Strength Your Immune System Amid Coronavirus: Experts Offer Simple Tips

WORLD NEWS | Trump Says He’s ‘Not A Fan’ Of Meghan Markle, Wishes Prince Harry ‘A Lot Of Luck’

President Trump has offered up his opinion of Meghan Markle During a recent press conference, a reporter asked Trump, what he makes of Markle and her husband, Prince Harry encouraging Americans to vote in the upcoming election. While asking her question, the reporter said that the royal pair ‘essentially encouraged people to vote for (Democratic … Continue reading WORLD NEWS | Trump Says He’s ‘Not A Fan’ Of Meghan Markle, Wishes Prince Harry ‘A Lot Of Luck’

NEWS ALERT | In U.N. Debut, Saudi King Calls For Comprehensive Solution On Iran

NEW YORK  – Saudi Arabia’s King Salman bin Abudlaziz on Wednesday called for a comprehensive solution on Iran and disarming its affiliate Hezbollah in Lebanon, and expressed support for U.S. efforts to start talks between Israel and the Palestinians during his first address to the United Nations General Assembly. He said Iran has exploited a … Continue reading NEWS ALERT | In U.N. Debut, Saudi King Calls For Comprehensive Solution On Iran

Loading…

Something went wrong. Please refresh the page and/or try again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s