News 24 | “Sama” Governor: Pumping 50 billion riyals into the banks to carry them postponing loan payments … and no change in the exchange rate

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The governor of the Saudi Arabian Monetary Agency “Sama”, Dr. Ahmed Al-Khulaifi, explained that the institution pumped 50 billion riyals into the banking sector as interest-free deposits for a year, to support liquidity with banks, to bear the postponement of payments of major companies not covered by the support of establishments.

Dr. Al-Khulaifi added, during a meeting with “Al-Arabiya”, that the liquidity support with banks also came to bear some fees, and to reassure banks to provide more loans during the next stage, as well as to support banks exposed to facilities, especially in Makkah and Madinah.

He stressed that the Foundation monitors liquidity and monetary mass, noting that indicators indicate that the monetary block exceeded two trillion riyals, an increase of 10% in the month of April compared to the same period last year, adding that 89% of the monetary block is deposits with the banking sector.

He added that Sama also monitors the operations of the points of sale on a weekly basis, indicating that the operations of the points of sale in all activities decreased by 33%, attributing this decrease to the closures that occurred due to the pandemic, pointing out that the food and beverage activity is the only activity that has witnessed growth.

On exports and imports, the governor of the Monetary Agency expected that the current account will record a fiscal surplus in the first quarter of the year 2020 reaching 21 billion riyals.

He pointed out that there is a program for open market operations that will be launched later this month, indicating that banks will be able to use open market operations when needed.

The governor of “Sama” denied that there is any intention to change the exchange rate policy, stressing that what the Minister of Finance announced about the extraordinary transfer of $ 40 billion in reserves and transferring it to the Public Investment Fund will not affect the exchange rate, and that the exchange rate remains at its current level of 3.75 riyals against the dollar.





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