Saudi Central Bank’s (SAMA) net foreign assets suffered a $4.4 billion drop in July, SAMA data showed on Sunday.
A country’s net foreign assets are a vital indicator of its economic health and a measure of its ability to support its currency’s peg to the dollar..
In June, net foreign assets saw a 2 percent rise, according to the bank’s monthly report. When compared to July 2020, its net foreign assets grew by 39.4 billion riyals.
Total assets held by SAMA increased by 6.4 billion riyals m-o-m to 1.848 trillion riyals in July 2021, the monetary agency said.
SAMA increased its investments in foreign securities by 4.5 billion riyals m-o-m to 1.130 trillion riyals in July, the highest since April. Compared to July last year, investment in foreign securities jumped 11 percent.
The central bank reduced the amount it holds as deposits with banks abroad to 244 billion riyals from 265 billion riyals in June.
