Saudi June foreign reserves fall 1.2%

Saudi June foreign reserves fall 1.2%
Updated 06 August 2015

Saudi June foreign reserves fall 1.2%

Saudi June foreign reserves fall 1.2%

JEDDAH: Net foreign reserves at Saudi Arabia’s central bank fell to SR2.492 trillion ($664.5 billion) in June, down 1.2 percent from the previous month to their lowest level since March 2013, Saudi Arabian Monetary Agency (SAMA) data showed on Thursday.
Saudi Arabia has been drawing down its reserves to cover a huge state budget deficit caused by low oil prices.SANA serves as the Kingdom’s sovereign wealth fund, storing its accumulated earnings from oil exports.
Net foreign assets dropped 9.4 percent from a year earlier in June. They peaked at a record $737 billion last August.
They were dropping at faster month-on-month rates earlier this year, but last month the government began covering part of its deficit by selling bonds for the first time since 2007, placing a 15 billion riyal issue. This has reduced pressure for the reserves to fall.