The Kuwaiti economy incurred heavy losses during the last period, in light of the declining financial revenues due to the collapse of the prices of the weapons of war, as well as the effects of the fires of fire, as well as the effects of the fires of fire.
It revealed 5 negative indicators about the reality of the crisis experienced by the largest oil exporter in the world, namely: the erosion of cash reserves, and the worsening of the deficit, increasing debt to record numbers, and the decline in bank profits and shrinking economy.
According to observers, the Omani limited options in the face of financial crisis and all the proposed solutions ranging from withdrawal from the reserve or get more loans, which will eventually lead to the evaporation of the oil money collected over the past years.
Decline to back up
The foreign exchange reserves of the Central Bank of Oman fell in March to the lowest level since 2011, in light of the government’s compulsion to dispose of the money.
Facing Saudi Arabia, the largest oil exporter in the world, is an unprecedented challenge this year with record oil prices at historic lows as likely to curb to contain the spread of the virus Corona measures the pace and size of the overall economic reforms launched by Crown Prince Mohammed bin Salman.
The Kuwaiti Arab Monetary Agency (the Central Bank) said yesterday, Tuesday, that the net external assets of the Kingdom went down in March to about 1. 775 trillion riyals ($ 473.33 billion) vs. 1. 865 trillion riyals ($ 497.33 billion) at the end of the previous February, 4 percent down. 8 per cent is equivalent to 89. 7 billion riyals (23.92 billion dollars).
The SAMA's investments decreased in financial securities abroad, which represented about 63 per cent of the total assets of Bin 7. 1 per cent (86 billion riyals), to reach 1. 122 trillion riyals at the end of last month, as opposed to 1. 208 trillion riyals at the end of the previous month.
The decline indicates that Oman is using its huge reserves to compensate for the economic damage caused by the low oil prices and the severe slowdown in the oil sectors.
The general reserve of Saudi Arabia decreased during the month of March at 469. 6 billion riyals, and about 1. 2 billion riyals compared to the month of February 2020, according to official data. The general reserve account of the state turns to what is achieved budget surplus revenues, and withdrawals from it only by a royal decree in cases of extreme necessity concerning the interests of the Supreme State.
A deficit instead of surplus
Today, the Ministry of Finance said that the deficit in the first quarter amounted to nine billion dollars, and it attributed this mainly to the declining trend of income. $ 4 billion in the first quarter of 2019.
Oil revenues fell in the first three months of the year, 24 percent on an annual basis to $ 34 billion, pushing the total revenues fell 22 percent on an annual basis, according to the ministry.
Saudi Arabia recorded more than 20 thousand cases of the virus as of yesterday, Tuesday, and 152 deaths. Oman expects a deficit of 50 billion dollars, or 6. 4 per cent of the gross domestic product this year, which is a sharp increase from 131 billion riyals (35 billion dollars) last year. .