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Saudi: PIF Gets $40 bln from Foreign Reserves

Saudi: PIF Gets $40 bln from Foreign Reserves

Saturday, 30 May, 2020 - 06:30
Riyadh - Asharq Al-Awsat

Saudi Arabia transferred a total of 150 billion riyals ($40 billion) from central bank foreign reserves to fund investments by sovereign wealth fund PIF in March and April, Finance Minister Mohammed al-Jadaan said on Friday.

Jadaan said in a statement that the transfers to PIF were done on an "exceptional basis."

"While foreign exchange flows since the start of the year are on average within historical levels, this measure (transfers to PIF) resulted in a reduction in net foreign reserves assets to support investment plans," Jadaan said in the statement.

According to the minister, PIF investments would not be reflected in published central bank data.

"Maximizing returns on the Kingdom's assets will reflect positively on economic performance and public finances and limit negative effects of the coronavirus pandemic. Returns on PIF investments will be available to support public finances when needed," he said.

Jadaan also said in the statement that the government would continue to implement development plans to diversify the economy, increase local content and support private sector growth, whether through the general budget or through PIF and development funds.

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