Saudi foreign reserves fell by 15.7% in July

Saudi Arabia’s foreign reserves fell by 15.7 per cent in July, reaching $105.2 billion, a new report has revealed. According to the monthly statistical bulletin issued by the Saudi Arabian Monetary Agency, the reserves fell by $6.56 billion to their lowest level since March 2013.

As the world’s largest exporter of oil, Saudi Arabia suffers when oil prices fall. Fluctuating prices have meant that the kingdom announced a budget deficit of $87 billion for this year.

The assets include gold, special drawing rights, reserve positions in the International Monetary Fund, foreign currencies and deposits abroad, as well as investments in foreign securities. Earlier this year, the IMF predicted that oil-producing countries would resort to withdrawing from their foreign reserves to cover the budget deficit.

In April, the government in Riyadh announced an economic plan that aims to reduce its dependence on oil revenues by 2030.