Riyadh: A Look Into the World of Central Bank Reserve Management
The global landscape is ever-changing, presenting both challenges and opportunities for central bank reserve managers. The governor of Saudi Arabia’s top financial institution, Ayman Al-Sayari, shared his insights on the complexities of the current macro-financial environment at a prestigious gathering in Riyadh.
Hosted in Riyadh and attended by the Bank for International Settlements, the two-day event kicked off on April 28. Reserve managers and experts from central banks in the Middle East and North Africa region, along with participants from other apex financial institutions, convened to delve into the latest trends in managing foreign exchange reserves.
The gathering provided a platform for participants to engage in insightful discussions, share perspectives, and showcase expertise on the most critical aspects of reserve management. Panel discussions and keynote speeches were the order of the day, sparking meaningful exchanges and fostering collaboration.
In a recent report, SAMA’s monthly statistics bulletin revealed a significant surge in foreign assets of Saudi Arabia’s commercial banks. In February, these assets skyrocketed by 22 percent, totaling SR347.63 billion ($92.7 billion) compared to the same period in the previous year.
This spike underscores a notable expansion in the international holdings and investments of commercial institutions. Not to be outdone, the central bank disclosed that its net foreign assets reached SR1.55 trillion in February.
While central banks primarily hold foreign assets for reserve management and monetary policy purposes, commercial banks use their foreign assets for business operations, customer services, and investment activities. The report further revealed that Saudi Arabia’s total reserve holdings stood at SR1.62 trillion, marking a five percent decline compared to the same period in 2023.