The Saudi Central Bank (SAMA) announced a significant growth in reserve assets, increasing by 5.5% annually. By the end of the second quarter of 2024, reserve assets rose by SR92.049 billion, reaching SR1.754 trillion, compared to SR1.662 trillion during the same period in 2023.
Quarterly and Monthly Growth
According to the Saudi Press Agency “SPA“, SAMA’s June statistical bulletin shows that reserve assets hit their highest levels by June 2024. They also experienced a 2.7% quarterly growth, increasing by SR46.724 billion compared to the first quarter of 2024, when assets stood at SR1.707 trillion. Additionally, reserve assets saw a slight 0.1% growth in June, up by SR1.146 billion.
Year-to-Date Increase
From the beginning of 2024 until the end of June, reserve assets grew by 6.6%, equivalent to an increase of SR107.986 billion. The assets were valued at SR1.646 trillion at the end of January 2024.
Breakdown of Reserves
SAMA detailed the composition of its reserves. Investments in foreign securities dominate, holding around SR1.015 trillion or 58% of the total. Foreign currency and deposits abroad make up approximately 37% at SR646.2 billion. Special drawing rights (SDRs) contribute 4% at SR77.2 billion. The reserve position with the International Monetary Fund (IMF) stands at SR13.3 billion. Lastly, monetary gold accounts for SR1.6 billion.
Supporting Economic Growth
The rise in total assets of the Saudi Central Bank is indicative of its efforts to support economic growth in the country. As the custodian of the Kingdom’s monetary policy, SAMA implements measures to stimulate economic activity and promote investment.
By maintaining an accommodative monetary policy stance, the bank aims to encourage borrowing and investment, thereby fueling economic expansion.
Role in Maintaining Price Stability
Price stability is a key objective of the Saudi Central Bank. By managing inflation and ensuring the stability of prices, SAMA contributes to a favorable business environment and enhances consumer confidence.
Through effective monetary policy tools, such as interest rate adjustments and liquidity management, the bank aims to keep inflation under control and maintain a stable macroeconomic environment.
