Latest news with #foreign currency
Arab News
a day ago
- Business
- Arab News
Saudi reserve assets rise to $459bn in May on foreign deposit surge
RIYADH: Saudi Arabia's official reserve assets reached SR1.72 trillion ($459 billion) in May, marking a roughly 4.5 percent increase from the previous month. Data from the Saudi Central Bank, also known as SAMA, shows the reserve boost was primarily driven by a jump in foreign currency and deposits held abroad, which surged 15.5 percent from April to SR671.27 billion — the highest level in nearly six years. The rise in reserves comes as Saudi Arabia navigates a shifting global economic landscape marked by volatile oil prices and rising project-driven imports. While oil revenues remain a core contributor to external inflows, the Kingdom has also seen growing non-oil export activity and expanding tourism receipts under its Vision 2030 diversification push. These factors, along with disciplined financial account management, have supported external balances and bolstered reserve accumulation, even as the current account surplus narrows. Despite this sharp monthly uptick, reserves were still about 2 percent lower compared to May of the previous year, according to SAMA data. The central bank's largest reserve component — investments in foreign securities — fell by roughly 2 percent month on month to around SR955 billion. Together, these two categories — foreign currency deposits abroad and foreign securities — accounted for approximately 94.5 percent of Saudi Arabia's total reserve assets in May. This suggests a deliberate allocation of reserves into more liquid foreign deposits, even as longer-term foreign securities slightly declined. Shifting more funds into overseas bank deposits could enhance liquidity, allowing the Kingdom quicker access to reserves when needed. Other components include monetary gold, which has remained unchanged at SR1.62 billion since 2008; Special Drawing Rights, or SDRs, steady at SR80.16 billion; and Saudi Arabia's reserve position at the International Monetary Fund, totaling SR12.65 billion. The IMF reserve position reflects the amount the Kingdom can access on demand from the fund without any conditions attached. According to a January report from Fitch Ratings, in 2024, Saudi Arabia had strong foreign financial reserves. It could cover 14.4 months' worth of imports and external payments using its reserves — well above the average of around 2 months for countries with a similar credit rating. Also, Saudi Arabia's net foreign assets — total assets abroad minus external liabilities — stood at 63.7 percent of gross domestic product, compared to an average of just 8.7 percent for other 'A'-rated countries. This highlights the Kingdom's robust financial cushion. Overall, the rise in reserves to SR1.72 trillion, driven by strategic allocation to foreign deposits and sustained by prudent reserve management, signals continued resilience and confidence in Saudi Arabia's economic fundamentals. This upward trend also enhances the Kingdom's ability to absorb external shocks, maintain currency stability, and support long-term investment goals aligned with Vision 2030.
Yahoo
7 days ago
- Business
- Yahoo
Cuban economy continues five-year decline, economy minister says
By Marc Frank and Nelson Acosta HAVANA (Reuters) -Cash-strapped Cuba's grueling crisis shows no signs of improvement, Cuban Economy Minister Joaquin Alonso said on Monday, announcing growth fell 1.1% last year on top of a 10% decline since 2019, official media reported. Alonso was speaking to the Cuban parliament's economic commission where he also indicated there was little hope for improvement this year, given toughening U.S. sanctions and a complicated international situation. The import-dependent Caribbean island nation has seen foreign currency revenues fall by around 30% in recent years, causing shortages of food, fuel, medicine and inputs for agriculture and manufacturing. A lack of fuel and equipment has crippled the energy grid, leading to daily blackouts in the Communist-run country of as much as 16 hours or more. Agriculture, livestock farming, and mining have fallen 53.4% over the last five years, and manufacturing 23%, Alonso reported. The minister was quoted as saying that this year and last had been marked "by the intensified impact of the blockade, the fierce persecution of financial flows, and barriers to international transactions that have hindered payments to suppliers." Alonso said hard currency earnings this year were 9% below the same period last year while imports were running 7% above last year's rate. "Cuba is importing more than it exports, which increases the debt," he was quoted as stating. The country last reported its foreign debt as $19.7 billion in 2020. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
