Wednesday, March 31, 2021

Saudi's Foreign Exchange Reserves Drop Again -- And In A 31-Day Month -- 28-Day Month To Follow -- March 31, 2021

Wow, how many times have it been said: Saudi Arabia can't "make it' on $60 oil. More corroboration / more validation:

Link here

Foreign Foreign Exchange Reserves in Saudi Arabia decreased to 1687980 SAR Million in January from 1701209 SAR Million in December of 2020.

It doesn't matter how Saudi Arabia spins this story, this is really, really bad news. Remember: January is a 31-day month; February, at least here in the USA, is a 28-day month.

All things being equal, February, 2021, should be significantly worse. 

4 comments:

  1. re: February, at least here in the USA, is a 28-day month.

    i'm pretty sure that February is a 28-day month in Saudi Arabia too..

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    1. LOL. You can tell I'm getting more frustrated, irritated, snarky, cynical as the week goes on. This has been a horrible week for me with regard to working internet / wi-fi issues with Spectrum. The good news: I have some of the best internet / wi-fi resources now and at substantially lower prices. The secret: switched from Spectrum to another carrier. I love Spectrum, have been with them for years, but every ten years or so, I suppose, it's important to see if things in that part of the world has changed. LOL. I will be back to normal next week.

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  2. IMHO the only reason the Saudi reserves are not lower is the stock markets are moving upward. Foreign reserves are invested, not sitting in banks.

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    1. Excellent, excellent observation. I think I did the "math" once and the reserves generated by oil is so much more than what the stock market could do, similar to North Dakota's Legacy Fund.

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