$40bn transferred from SAMA’s FX reserves to PIF, says Saudi finance minister

Mohammed Al-Jadaan, the Minister of Finance and acting Minister of Economy and Planning. (AFP/File Photo)

LONDON (RAHNUMA) SAR150 billion ($40 billion) were transferred from the Saudi Arabian Monetary Authority’s foreign exchange reserves to the Kingdom’s Public Investment Fund (PIF) in March and April, Finance Minister Mohammed Al-Jadaan said on Friday.

The government will continue to implement development plans to diversify the economy, increase local content and support private sector growth, Al-Jadaan, who is also acting minister of economy and planning, said in a statement released by the Saudi Press Agency.

This will happen either through the state’s general budget or through the role played by the development funds and the PIF to improve economic performance and enhance the return on the Kingdom’s assets, he added.

The transfer to the PIF was carried out after an in-depth consultation and in consideration of the adequacy of foreign exchange reserves, Al-Jadaan said.

Decisions to gradually reopen economic activities represent a new stage in the face of the coronavirus pandemic and toward a gradual return to normal economic activity, he added.

Al-Jadaan said the government had increased — during the last period through the budget — spending on urgent and necessary requirements to face the coronavirus crisis, and in doing so had significantly strengthened the financial allocations for the health and related services sector.

The decision to restart some sectors had been made with the advice of health professionals and guidelines at every stage of the plan to resume economic activities, he added.

The return of activities to their previous levels largely depends on the level of commitment by all, Al-Jadaan said, adding that the move is in line with economies reopening worldwide.

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