Saudi central bank governor says monetary conditions ‘reassuring’

Saudi Arabia’s central bank governor said that the country’s monetary conditions are “reassuring” due to prudent monetary policy and that its banking sector enjoyed good liquidity.

In a statement, Governor Fahad Almubarak said that the Saudi Central Bank would continue to manage foreign exchange reserves based on “balanced investment policies”.

He noted that despite the exceptional circumstances in the kingdom and around the world, the Saudi economy has proven it’s ability to withstand shocks, thanks to a range of factors, such as the rapid response by the government and central bank.

“Monetary conditions in the kingdom are reassuring as a result of the central bank’s prudent monetary policy,” the governor said, commending the banking sector for “its financial solvency, operational efficiency, good liquidity, and ability to face current challenges”.

Almubarak noted that the capital adequacy ratio hit 19.4 percent for the third quarter of 2022, while the liquidity coverage ratio reached nearly 174.2 percent for the same period, which improves the bank’s ability to face challenges and crises.

Almubarak said the central bank’s reserve assets grew by 2.8 percent in the first nine months of 2022, reaching SAR 1.756 billion ($0.47 billion).