The US Fed’s recent decision to cut interest rates by a further 50bp is placing additional pressure on the margins of Saudi Arabia’s banks, according to a recent report from Fitch Ratings. Following the lead of the Fed, the Saudi Arabian Monetary Authority (SAMA) cut its repo rate on Monday by 50bp, bringing rates in the Kingdom to an all time low of 1%. But the Kingdom’s banks will feel the pinch as their net interest margins (NIM) looks set to be squeezed.
Net fund flows into emerging market debt were flat for the week ending May 27, with investors continuing to favour hard currency debt over local assets.
Jun 2, 2020
April saw foreign exchange reserves at the Saudi Arabian Monetary Authority (SAMA) continue to fall by an additional USD24.7bn, with the total decline over March and April now totalling some USD48.7bn. This was largely due to a liquidity injection into the Public Investment Fund (PIF).
Jun 2, 2020
The IMF has approved a USD23.93bn two-year credit line for Chile, the latest Latin American country to turn to the multilateral agency for help bolstering fiscal buffers in a bid to mitigate the negative effects of the coronavirus pandemic.
Jun 1, 2020
The IMF has approved a USD11bn flexible credit line with the Peru to help the Latin American nation cushion the impact of the coronavirus pandemic on its economy.
May 29, 2020