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SAMA’s Reserve Assets Rise to $467.7 Billion

The headquarters of SAMA (Asharq Al-Awsat)
The headquarters of SAMA (Asharq Al-Awsat)
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SAMA’s Reserve Assets Rise to $467.7 Billion

The headquarters of SAMA (Asharq Al-Awsat)
The headquarters of SAMA (Asharq Al-Awsat)

The Saudi Central Bank (SAMA) reported an annual growth rate of 5.5 percent in its reserve assets, with an increase of approximately SAR 92.049 billion ($24.5 billion).
The growth brought the total reserve assets to SAR 1.754 trillion ($467.7 billion) by the end of the second quarter of the current year, compared to SAR 1.662 trillion ($443.2 billion) during the same period last year.
According to the Saudi Central Bank’s latest monthly statistical bulletin, reserve assets reached their highest levels at the end of June. On a quarterly basis, reserve assets grew by 2.7 percent, an increase of approximately SAR 46.724 billion, compared to the first quarter, which stood at SAR 1.707 trillion. On a monthly basis, the reserve assets grew by 0.1 percent, with an increase of about SAR 1.146 billion.
Reserve assets have seen a 6.6 percent increase from the beginning of the year until the end of June.
Reserve assets are composed of five main components. The largest of these is "Investments in Securities Abroad," which constitutes approximately 58 percent of the total, amounting to around SAR 1.016 trillion at the end of the second quarter of 2024.
The second largest component is "Foreign Exchange and Deposits Abroad," which represents about 37 percent of the total, amounting to approximately SAR 646.3 billion.
The third component, "Special Drawing Rights," accounts for around 4 percent of the total, amounting to SAR 77.2 billion.
The fourth item is the "Reserve Position with the International Monetary Fund," which totals SAR 13.3 billion.
Finally, "Monetary Gold" makes up the fifth component, with a value of approximately SAR 1.624 billion.

 

 

 

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Gulf Markets See Mixed Gains as Investors Await US Inflation Data

An investor watches a screen displaying stock information on the Saudi Stock Market (Tadawul) in Riyadh. (Reuters)
An investor watches a screen displaying stock information on the Saudi Stock Market (Tadawul) in Riyadh. (Reuters)
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Gulf Markets See Mixed Gains as Investors Await US Inflation Data

An investor watches a screen displaying stock information on the Saudi Stock Market (Tadawul) in Riyadh. (Reuters)
An investor watches a screen displaying stock information on the Saudi Stock Market (Tadawul) in Riyadh. (Reuters)

As the world anticipates crucial economic data - specifically US consumer prices - most Gulf markets posted mixed gains at the start of this week. This performance reflects the influence of global stocks after a challenging period for investors, driven by fears of a US recession.

Most Gulf stock markets closed at the beginning of the week with increases ranging between 2 and 0.2 percent, supported by positive economic data last week, and the statement of some policymakers in the US Federal Reserve that they may reduce interest rates next September, according to Reuters.

In a statement to Asharq Al-Awsat, the Head of Asset Management at Arbah Capital, Mohammed Al-Farraj, explained that the recovery of Gulf markets is driven by several factors. Chief among them are expectations of improved global economic performance, supported by central banks in many countries easing monetary policies.

Additionally, the region is benefitting from rising oil prices, increased foreign investment inflows, and improved financial conditions for companies, he remarked.

Al-Farraj stressed that the performance of Gulf markets in the coming period will be affected by US inflation data, which will be a decisive factor in determining the course of interest rates.

For his part, Chief Economist at Riyad Bank, Dr. Nayef Al-Ghaith, told Asharq Al-Awsat that expectations of the Federal Reserve’s decisions in September and the rest of 2024 depend largely on the economic data, such as inflation rates, unemployment, and GDP growth.

“Central banks in the Gulf countries often follow the movement of the Federal Reserve due to the peg of their currencies to the dollar. Therefore, any change in US interest rates could be reflected in borrowing costs and deposits in Gulf banks,” he remarked.

According to Reuters, three Federal Reserve policymakers expressed confidence on Thursday that inflation had decreased sufficiently to warrant a reduction in interest rate. This news, combined with a larger-than-expected drop in US unemployment claims, contributed to a market recovery.

The US Department of Labor reported a 17,000 decrease in initial claims for government unemployment benefits, bringing the total to 233,000 seasonally adjusted claims for the week ending Aug. 3. This decline marks the largest drop in about 11 months.