Saudi Arabia Is Facing A Cash Crunch

Saudi Arabia Is Facing A Cash Crunch

The Saudi central bank has pulled $50 to $70 billion over the past six months. “It is no surprise that Saudi Arabia is being hurt by cheap oil.” The country relies primarily on oil to offset spending programs. “Capital Economies estimates the country’s current account deficit will climb to 7.5% of gross domestic product this year.”

Analyst are optimistic, that the Saudis are well positioned to weather the storm and won’t have to devalue their currency, the riyal. “That’s especially true if oil prices rebound in the coming months and years.”

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