RIYADH: According to official data, Saudi Arabia has a good ability to resist shocks, thanks to significant foreign reserves that cover imports for a very comfortable period of time. These reserves substantially exceed the worldwide average, placing the Kingdom at the top of the G20 on this parameter.
According to Al-Eqtisadiah’s Financial Analysis Unit, the Kingdom’s foreign reserves are enough to fund imports for around 22 months, which is about three times the global average of about six months. Saudi Arabia has the largest foreign exchange reserves in the Arab world and the Middle East, giving the government the power to support economic activity and regulate the exchange rate.
These reserves also aid in debt repayment, securing imports of products in extraordinary situations, and financing a portion of the budget deficit when necessary. Additionally, they enable the national economy to absorb internal and international economic shocks more widely.
Gold, special drawing rights, reserve positions with the International Monetary Fund, foreign currency, overseas deposits, and investments in international securities are among the reserve assets of the Saudi Central Bank, or SAMA.
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