Saudi Arabia Foreign Reserve Assets Plunge -- August 29, 2023

Locator: 45499SAUDI.

Saudi Arabia's foreign reserves plunge, link here. History here.

The previous report, not the most recent report which is pending over at trading economics:

June 2023 report: Foreign Exchange Reserves in Saudi Arabia increased to 1662018 SAR million in June from 1658228 SAR Million in May of 2023. [1.662018 trillion].

In the most recent report, posted below, reserves dropped to $407 billion (1.53 trillion Saudi riyals).

From the linked article.

Saudi Arabia’s net foreign assets plunged by as much as $16 billion in July, the biggest drop since the onset of the pandemic in 2020, as the Kingdom is slashing its crude oil production.

The reserves in net foreign assets fell to the lowest level since 2009, per data from the Saudi central bank. Those reserves dropped to $407 billion (1.53 trillion Saudi riyals).

Exchange rate: 3.76 riyals for one dollar, or 26.65 cents / riyal or about 25 cents for a riyal.

More:

Analysts expect Saudi foreign reserves to rise in September when the first performance-linked dividend from state oil giant Saudi Aramco is expected. Aramco said earlier this month that it intends to distribute performance-linked dividends over six quarters beginning in the third quarter of 2023.

Higher expenditures on diversification from oil amid lower oil export revenues resulted in a widening budget deficit in Saudi Arabia, the world’s largest crude oil exporter, data showed earlier this month. Saudi government deficit jumped by 80% from the first quarter to $1.4 billion (5.3 billion Saudi riyals) in the second quarter of 2023, as spending on social benefits and capital expenditures jumped.

It should also be noted that Saudi's domestic demand for oil increases significantly July, August and September (those reports pending, also) due to a/c demand during the extremely hot summer months.