Saudi central bank May net foreign reserves drop to $672 bln
Assets dropped by 8.1 percent from a year earlier to their lowest level since April 2013, central bank data showed on Tuesday
Net foreign assets at Saudi Arabia's central bank fell to 2.521 trillion riyals ($672.2 billion) in May, down by $6.6 billion or 1.0 percent from the previous month as the kingdom continued to draw down reserves to cover a budget gap caused by cheap oil.
Assets dropped by 8.1 percent from a year earlier to their lowest level since April 2013, central bank data showed on Tuesday.
The central bank serves as the country's sovereign wealth fund, storing its earnings from oil exports. Assets' year-on-year drop is partly due to the strong U.S. dollar, which has cut the value of the portion denominated in non-dollar currencies, but a major part is due to a fiscal drawdown, analysts say.
Assets fell by $11.8 billion in April from the previous month, by $16.0 billion in March and by $20.2 billion in February. They peaked at a record $737 billion last August.
Also Read
-
Saudi Arabia’s crude oil exports slip in April
Saudi Arabia’s April crude exports fell by 161,000 barrels per day (bpd) as domestic refiners processed more crude Energy -
Saudi Arabia, UAE keep growing despite cheap oil
The UAE even recorded high levels of job creation during May, while Saudi Arabia’s output and new orders expanded Energy -
Saudi Arabia’s efforts toward diversification cushion oil price drop
Saudi Arabia's government spending has intensified the need for longer term fiscal, environmental and resource sustainability in the Kingdom Energy -
Oil prices dip after Saudis say could raise output to meet demand
Crude demand remains strong despite slowing global economy Energy -
U.S. becomes biggest oil producer in 2014
The U.S. produced 15.9 percent more oil in 2014 at 11.6 million barrels of oil per day to topple Saudi Arabia’s 11.5 million bpd production Energy
