Saudi Arabia Foreign Exchange Reserves -- May, 2020

Updates

July 5, 2020: from earlier --

July 5, 2020: Saudi non-oil private sector shrinks again in June -- Reuters. Link here. Data points:

• non-oil private sector shrank for the fourth straight month in June
• employment in the private sector fell at the fastest pace since the survey began in August, 2009
• measures to contain the spread of corona virus continued to hit consumer demane
• setback for Prince MbS who has put the private sector at the center of reforms aimed at diversifying the kingdom's oil-reliant economy
• KSA: had the region's highest corona virus figures
• recently ended a three-month curfew on June 21, 2020

Original Post 

This was just posted earlier today. Link here.

May, 2020, was an interesting month.

• very, very, low oil prices
• Prince MbS has two "rice bowls"
• his country's foreign exchange reserves: in round numbers, about $500 billion
• the Public Investment Fund (PIF): his goal -- to get it to $2 trillion; in round numbers, currently about $500 billion
• there was some movement between the two "rice bowls" in May, a "movement" which I did not understand;
• the kingdom borrowed somewhere between $10 billion and $40 billion to take advantage of cheap global equities (I'm sure the number is well known by others, but I was confused by the various articles on the subject) (see this note)
• my hunch is that based on lower commodity prices and a cut back in exports, Saudi's foreign exchange reserves were "helped" by this borrowing -- but I could be wrong -- the graph below? It is what it is.

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And, Now, For A Musical Interlude

Take Good Care of My Baby, Bobby Vee

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Cricket 

I know very little about cricket.

Perhaps a reader can correct me but it appears that a British cricket club has three teams. Each team is informally called an "eleven," for obvious reasons. The two teams that play Saturday are called the "first eleven" and the "second eleven." Meanwhile, a third team is called the "Sunday eleven."

At least that is what it appears to me.

I mention that because tonight, well after midnight, my thoughts turned to my halcyon days in England some years ago. While hiking cross country on the weekend, I would often come upon a cricket match. I would sit, take a breather, and watch for a half hour or so before moving on.

Great memories.