RIYADH: According to new data, Saudi Arabia’s official reserve assets increased by 10% year-over-year to SR1.76 trillion ($469.83 billion) in August, the highest level in 21 months.
According to data made public by the Saudi Central Bank, or SAMA, these holdings include of foreign reserves, monetary gold, special drawing rights, and the reserve position held by the International Monetary Fund.
The latter accounted for 95 percent of the total, or SR1.67 trillion in August, and included foreign currency, deposits, and securities investments. With an increase of 10.62 percent over this time, this category led the growth.
Additionally, August data revealed a 2 percent increase in special drawing rights, which accounted for 5% of the total at SR79.35 billion.
A basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling, determine the value of SDRs, which were created by the IMF to augment member nations’ official reserves. When necessary, they can be traded for freely useable currencies between countries.
SDRs support global commerce and financial stability by acting as a unit of account, stabilising exchange rates, and supplying extra liquidity.
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