Saudi foreign reserves cover imports for 4 years, 16 times world average

A man counts Saudi Riyal banknotes in a jewellery store in Riyadh, Saudi Arabia, in this October 18, 2017 photo. (REUTERS)
Updated 20 November 2017

Saudi foreign reserves cover imports for 4 years, 16 times world average

RIYADH: Saudi Arabia’s foreign reserves are sufficient to cover imports for about four years (48 months), according to August data, an analysis published on Sunday by Al-Eqtisadiah newspaper revealed.

According to the analysis conducted by the economic reports unit at the newspaper, based on SAMA data, the rate of coverage of Saudi foreign reserves for imports is 16 times the global average of only three months, meaning that the rate in Saudi Arabia exceeds the world average by 1,500 percent.

Given this huge stock of foreign exchange, the Saudi economy has great strength to support its exchange rate policy and economic activities.

These reserves also help finance part of the budget deficit resulting from falling oil prices, debt repayment and provision of imports of goods in exceptional circumstances.

These reserves also help the national economy absorb economic shocks in general, whether local or global.

SAMA’s reserve assets include gold, special drawing rights, IMF reserves, foreign exchange and deposits abroad, as well as investments in securities abroad.

Saudi Arabia’s reserves abroad amounted to SAR 1.83 trillion at the end of August, while imports during the same month amounted to about SAR38.1 billion.

The rate of coverage of foreign reserves of imports in August rose from the levels of the month of July, which was about 3.6 years (43 months), exceeding the global average by 1,331 percent.

White House adviser Jared Kushner: Saudi Arabia is 'important ally'

Updated 22 October 2018

White House adviser Jared Kushner: Saudi Arabia is 'important ally'

WASHINGTON: Speaking about Saudi Arabia's investigation into the case of the late Jamal Khashoggi, White House senior adviser Jared Kushner said that the Trump administration is still in "fact-finding phase."

"We're getting facts in from multiple places and once those facts come in, the secretary of state will work with our national security team to help us determine what we want to believe, and what we think is credible and what we think is not credible," Kushner said on Monday

"We have our eyes wide open. The president's focused on what's good for America, what are our strategic interests, where do we share interests with other countries let's work towards those," he added.

Kushner stressed that Saudi Arabia was an "important ally" of the US, and a "critical partner," especially in countering Iran's influence in the Middle East.

Kushner also said he had spoken to Crown Prince Mohammed bin Salman about the case.