RIYADH: According to recent data, Saudi Arabia’s official reserve assets increased by 4% year-over-year to SR1.71 trillion ($456.97 billion) in September. 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 94.5 percent of the total, or SR1.62 trillion in September, and included foreign currency, deposits, and securities investments. During this time, this category experienced a 4.11 percent growth.
According to data from September, special drawing rights increased to SR79.86 billion, the biggest amount in 2.5 years and a 4.18 percent increase. Currently, 4.66 percent of Saudi Arabia’s total reserves are in SDRs. 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, governments can trade them for freely usable money.
SDRs serve as a unit of account, stabilize exchange rates, add liquidity, and promote global commerce and financial stability. During this time, the IMF reserve position, which was around SR12.64 billion, dropped by 11.45%. This category shows how much a nation can take out of the IMF without any restrictions. Saudi Arabia’s strategic investments in foreign securities are directly linked to its official reserves, which have been a vital component of the country’s economic stability.
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