Saudi central bank's net foreign assets rose by $9bln in June 2021

Investments in foreign securities up nearly 8%

Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

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Saudi Arabia’s net foreign assets rose over 2 percent in June compared to May, central bank data showed Saturday.

Saudi Central Bank’s (SAMA) net foreign assets rose by 34 billion riyals ($9.1 billion) to 1.65 trillion riyals, according to the bank’s monthly report.

Total assets held by SAMA increased by 16.18 billion riyals month-on-month (MoM) to 1.842 trillion riyals in June 2021, the monetary agency said.

When compared to June 2020, its assets grew by 39.4 billion riyals.

SAMA’s investments in foreign securities, which account for 61 percent of its total assets rose nearly 8 percent y-o-y to 1.125 trillion riyals in June.

According to the consultancy, Capital Economics, the Saudi economy is picking up pace as recovery in the non-oil sector gathered steam in Q2. It said the economy is poised to grow from 2.2 percent to 4.8 percent in 2021 and from 4.1 percent to 6.3 percent in 2022.

“Looking ahead, we expect economic growth to pick-up over the second half of the year and into 2022 as virus restrictions are eased amid the strong vaccine rollout and, now that the OPEC+ impasse has been resolved, oil production is raised further,” the consultancy said.

(Writing by Brinda Darasha; editing by Daniel Luiz)

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© ZAWYA 2021

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