How much were Saudi Arabia’s foreign reserves during June 2021?
1.67 trillion riyals ($450 billion) covering the Kingdom’s imports for three years.
What is the volume of the Kingdom’s imports during June 2021?
46 billion riyals ($12.270 billion).
The Saudi newspaper, Al-Eqtisadiah, said that the kingdom’s foreign reserves reached 1.67 trillion riyals ($450 billion) at the end of June, noting that it is enough to cover the country’s imports for three years.
And the newspaper pointed out, today, Saturday, that official data indicate that the value of the Kingdom’s imports during June amounted to 46 billion riyals (12.270 billion dollars).
The rate of coverage of foreign reserves for imports is 6.1 times the global average of only 6 months, and it is 505% higher than the global average, according to the newspaper.
These reserves help finance part of the budget deficit resulting from the decline in oil prices, pay debts and provide imports of goods in exceptional circumstances.
The reserve assets of the Saudi Central Bank “SAMA” include gold, special drawing rights, reserves with the International Monetary Fund, foreign exchange, deposits abroad, in addition to investments in securities abroad.
The stability of the rate of coverage of foreign reserves for imports in June, compared to May, came as a result of the increase in the value of imports and foreign reserves at almost the same pace.
In June, imports rose by 2.5 percent, equivalent to 1.1 billion riyals ($290 million), while foreign reserves rose by 2%, equivalent to 32.9 billion riyals ($8.770 billion), according to the newspaper.
The foreign reserve measures the country’s ability to cover imports, and one of the benefits of foreign reserves is to increase confidence in the monetary policy of the country that holds the reserves. It also supports confidence in the exchange rate of the country’s national currency.