Saudi Foreign Reserves Cover Imports For Four Years

Saudi Riyal banknotes

An economic report said the current indicators stressed the cohesion of the Kingdom’s national economy. This comes amid the unprecedented challenges afflicting the global economy as a result of the outbreak of COVID-19.

The report revealed that the Kingdom’s financial reserves were sufficient to cover Saudi imports for 4 years (47 months).

According to Jadwa Investment (licensed by the Capital Market Authority); the size of the current foreign reserves with the Saudi Central Bank can cover about 47 months (4 years) of the Kingdom’s imports, or $10.5bn of goods and products every month.

These indicators come amid extensive Saudi government efforts to stimulate the economy and overcome the negative effects of the coronavirus.

The Kingdom launched a number of incentives and direct financial support packages worth SAR120bn ($32bn). This is to strengthen economic activities through the private sector.

The Saudi government also subsidized the salaries of private sector employees and granted concessional financing to MSMEs to support business continuity.

The Jadwa Investment report stated that the latest government official data reveals that the comprehensive money supply; an indicator of the availability of deposits and cash in circulation), increased significantly in February by 7.5% on an annual basis, and by one percent on a monthly basis.

The overall money supply growth came mainly as a result of a continuous rise in demand deposits. This increased by 9.5% from February 2019, according to the report. In addition to an increase in term deposits by 6.6% on an annual basis until February.