Saudi Arabia mulls new finance regulations
Wednesday 29 September 2010 - by Will Henley
Saudi Arabia may be forced to introduce a slew of new financial reforms to help improve domestic mortgage supply, the countryâ€™s central bank has suggested.
New international standards would â€śenhance significantlyâ€ť the position of global institutions, he said.
Al-jasser continued: â€śThe most prominent measures [implemented over the last year] were reducing the statutory reserve requirements ratio, the repo and the reverse repo rates several times, enhancing the liquidity position in the banking system by placing long term deposits in the local currency and US dollar with local banks on behalf of government institutions and organisations, [and] facilitating foreign exchange swaps in order to provide the necessary liquidity in US Dollar for the local banking system.â€ť
The governor was speaking as the Saudi Arabian Monetary Agency published its annual report. Referring to the report, the governor reported that Saudi Arabia's GDP dropped to 0.6 per cent during 2009, compared with 4.2 per cent the previous year. Inflation stood at 5.1 percent in 2009 compared to 9.9 percent in the preceding year.
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