Saudi Arabia is employing all possible options to deal with the impacts of the “Covid-19” pandemic, according to the Ministry of Finance, including boosting liquidity from foreign exchange.
In a press release, the ministry said that the Kingdom was one of the key nations that helped poor countries maintain their foreign reserves throughout the epidemic.
The Saudi ministry stressed that it recently contributed a deposit of $3 billion to Egypt’s Central Bank, on top of $2.3 billion in earlier contributions.
A deposit of $3 billion was made to the Central Bank of Pakistan, with $1.2 billion in trade finance supplied to assist Pakistan’s balance of payments, according to the report.
According to the ministry, the $9.5 billion in external facilities are comparable to almost 70% of the special drawing rights recently given to the Kingdom by the International Monetary Fund (IMF).
The Saudi financial system, according to Finance Minister Muhammad Al-Jadaan, is strong and competent in dealing with the worldwide challenge posed by the Corona pandemic.
He went on to say that the recovery of economic activity in developing and developed countries is still very different.
He added that this disparity increases the risks of comprehensive and sustainable growth, particularly in light of the potential spread of new mutated strains (Covid-19) and low vaccination rates in developing countries.
Al-Jadaan stressed the importance of using all available tools as long as necessary to address the negative effects of the pandemic and continue to maintain the sustainability of the recovery, to avoid premature removal of support measures.
He also emphasized the necessity of addressing financing shortfalls for all pillars of the acceleration program, as well as promoting strong corporate governance frameworks and efficient capital markets to boost economic growth.