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Saudi Arabia's foreign reserves have fallen to the lowest level in over 13 years. The country's net foreign assets declined for the fifth consecutive month to $410 billion in April and are down more than 44% since peaking in August 2014. The decrease in reserves follows a change in Saudi Arabia's approach to managing its oil wealth, with officials deciding to hold onto the money before determining its allocation. The government aims to maintain a specific level of reserves as a safeguard against potential economic shocks. The country's fiscal outlook is also becoming less favorable, with the IMF projecting a budget deficit of 1.1% of GDP in contrast to the government's expectation of a surplus. To address its financial needs, Saudi Arabia recently issued $6 billion worth of Islamic bonds.

Saudi net reserves fall to $410 billion, lowest since 2010

Saudi Arabia’s foreign reserves have fallen to the lowest level in over 13 years. The country’s net foreign assets declined for the fifth consecutive month to $410 billion in April and are down more than 44% since peaking in August 2014. The decrease in reserves follows a change in Saudi Arabia’s approach to managing its oil wealth, with officials deciding to hold onto the money before determining its allocation. The government aims to maintain a specific level of reserves as a safeguard against potential economic shocks. The country’s fiscal outlook is also becoming less favorable, with the IMF projecting a budget deficit of 1.1% of GDP in contrast to the government’s expectation of a surplus. To address its financial needs, Saudi Arabia recently issued $6 billion worth of Islamic bonds.

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