By Majid Al Shabib
Riyadh – Mubasher: The Saudi Arabian economy has very strong liquidity that has not reached a critical level, said Abdulaziz bin Saleh Al-Furaih, vice-governor of the Saudi Arabian Monetary Agency (SAMA).
Al-Furaih told Mubasher on Monday that raising the loans-to-deposits ratio to 85% and allowing banks to reach 90% is a minor amendment that would not weigh on their lending ability.
SAMA has 'various' options to overcome liquidity shortage, said the official, adding that the current situation is assuring and stable and there is no need currently to use any of such options.
The vice-governor also stressed that Saudi Arabia would continue to support the riyal peg to the dollar.
He noted that the kingdom's financial reserves are at 'excellent' levels and would continue to grow.
Translated by Sayed Abdel Rahman
