RIYADH: Saudi Arabia’s official reserve assets saw a 2.22 percent year-on-year increase to SR1.63 trillion ($435.41 billion) in October, underscoring the Kingdom’s fiscal resilience.
Data from the Saudi Central Bank, also known as SAMA, revealed that these holdings include monetary gold, special drawing rights, the International Monetary Fund’s reserve position, and foreign reserves.
The latter category comprises currency and deposits abroad as well as investments in foreign securities, and accounted for 94.34 percent of the total, reaching SR1.54 trillion in October – an annual rise of 2.32 percent.
Special drawing rights rose to SR78.42 billion, marking a 2.09 percent increase and accounting for 4.8 percent of Saudi Arabia’s total reserves.
Created by the IMF to supplement member countries’ official reserves, SDRs derive their value from a basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling. SDRs can be exchanged among governments for freely usable currencies when needed.
In addition to providing supplementary liquidity, SDRs help stabilize exchange rates, act as a unit of account, and facilitate international trade and financial stability.
The IMF reserve position totaled around SR12.41 billion but recorded an 8.03 percent decline during this period. This category represents the amount a country can draw from the IMF without conditions.
Gold reserves remained steady at SR1.62 billion, a level unchanged since February 2008.
Saudi Arabia’s reserve assets, underpinned by substantial foreign exchange reserves and sovereign wealth managed through entities like the Public Investment Fund, serve as a cornerstone of the Kingdom’s fiscal strength.
These reserves provide the government with a robust financial buffer to navigate economic uncertainties, including fluctuating oil revenues, global financial market turbulence, and geopolitical risks.
With significant reserve levels, the Kingdom is well-positioned to meet its financing requirements across short, medium, and long-term horizons.
This financial resilience bolsters Saudi Arabia’s ability to secure favorable borrowing terms from both domestic and international markets, enhancing investor confidence and supporting fiscal sustainability.
The strategic deployment of these assets aligns with Saudi Arabia’s Vision 2030, which focuses on economic diversification, enhancing non-oil sectors, and ensuring sustainable long-term growth.
This comprehensive strategy equips the Kingdom to mitigate risks while fostering stability and pursuing its ambitious economic objectives.
