Saudi Arabia's foreign reserves fall sharply in 20 years due to Corona lockdown

New Delhi, 1 June 2020 Monday

Saudi Arabia's foreign reserves have fallen for the second month in a row. This is the biggest drop in the last 20 years, according to a Reuters report. Foreign reserves declined sharply in March and April.

In fact, the global crisis of crude oil and falling oil prices is hurting Saudi Arabia financially. Saudi Arabia, meanwhile, used its various reserves in March and April in hopes of relieving the economy.

Saudi Arabia is the world's largest oil exporter. Prices have fallen sharply due to declining demand for oil. Which has had a detrimental effect on Saudi. So the Corona virus has caused sanctions in Saudi Arabia.

Which has had an impact on the economy. According to Reuters, Saudi transferred 40 40 billion from its foreign reserves to public investment funds for its overseas investment between March and April.

According to figures released by the Saudi Arabian Monetary Authority (SAMA), net foreign assets stood at 46 464 billion in March.

Which fell to 44 443 billion in April. Net foreign assets include foreign exchange, foreign deposits and investments made in foreign securities.

SAMA's net foreign assets fell by 27 billion in March. However, Saudi Finance Minister Mohammed al-Adan said no extraordinary transfers had taken place.

The investments were made due to favorable times in the international market, he said. Last month, Saudi Arabia tripled its value-added tax to improve the economy. It also stopped giving living allowances to government employees.