Riyadh – Mubasher: The Saudi Arabian Monetary Agency’s (SAMA) foreign reserves went up in June for the first time in a year, Reuters reported, citing official data.
Net foreign assets edged up to $493.3 billion in June 2017 from $491.7 in May, the agency added, noting that the assets tumbled 12.3% on annual basis.
“It was not yet clear whether a three-year downtrend in the reserves was ending. The long slide has worried financial markets because the reserves may be needed to defend the Saudi riyal from any speculative attack,” analysts told Reuters.
“The rise in net foreign assets did not necessarily mean their downtrend had ended or that the government would no longer need to draw them down,” Monica Malik, chief economist at Abu Dhabi Commercial Bank (ADCB), stated, as quoted by the agency.
Saudi Arabia’s reserves kept as deposits in foreign banks dropped to $94.6 billion in June, whereas foreign securities went up to $337.1 billion.
