RIYADH: In November, the Kingdom’s central bank’s reserves increased by 2.8 percent year over year to SR1.69 trillion ($450.31 billion). These assets consist of foreign accounts, monetary gold, and special drawing rights, which are the reserve position held by the International Monetary Fund. The latter group, which included foreign cash and deposits as well as foreign securities investments, made up 94.6 percent of the total and increased by 3.12 percent annually to SR1.6 trillion.
Special drawing rights, which make up 4.6% of Saudi Arabia’s total reserves, fell to SR77.5 billion, a minor reduction of 0.8%. SDRs are based on a basket of major currencies, such as the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling. The IMF created them to complement member countries’ official reserves. When necessary, countries can trade SDRs for freely useable currencies.
SDRs serve as a unit of account, aid in exchange rate stabilisation, promote global trade, and support financial stability in addition to offering additional liquidity. During this time, the IMF reserve position decreased by 11.3 percent from its peak of SR12.25 billion. This category shows how much a nation can take out of the IMF without any restrictions.
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