JEDDAH: Net foreign assets at Saudi Arabia’s central bank fell by $6.6 billion in August as the Kingdom liquidated assets to cover a budget gap caused by cheap oil, official data showed.

Latest data from Saudi Arabian Monetary Agency showed foreign assets shrinking 1 percent from the previous month to SR2.455 trillion ($655 billion) in August, for a year-on-year decline of 11.2 percent. Assets hit a record high of $737 billion in August last year.

In June and July, SAMA sold securities heavily while increasing its deposits at foreign banks, its balance sheet shows.

But in August it reversed that pattern. Its foreign securities holdings actually rose, by $4.3 billion to $470 billion, while foreign bank deposits tumbled $10.3 billion to $121 billion, according to the latest data.

The slide in Saudi Arabia’s foreign reserves may continue for years, London-based Capital Economics said in a report last week, though it predicted the pace would slow as Riyadh restrained spending and oil prices rebounded gradually.

“This shouldn’t cause too much alarm — even at the current rate of depletion, FX reserves would last for at least another eight years,” it said.