| Saudi Arabia has issued its first sovereign bonds since 2007 to cover a budget deficit created by low oil prices, launching a series of debt sales that could reshape its financial markets. So far Riyadh has mainly been running down its financial reserves to cover the deficit; Mubarak said the government had withdrawn 244 billion riyals from reserves in 2015.
This has cut the foreign assets held by the central bank, which is the kingdom’s sovereign wealth fund. Its net foreign assets — mostly U.S. dollar bank deposits and bonds — fell to $672 billion in May. The start of Saudi bond sales means pressure for the reserves to fall may now decrease...............................................Full Article: Source
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