Saudi Arabia assets is depleting due to covid 19

@rajeev075 (1961)
India
May 1, 2020 7:13am CST
You all know that Saudi Arabia is one of the largest oil producer and seller in the world. Now due to covid-19 its assets are depleting. As per news report Saudi's reserves has fallen at quickest rate in 20 years. The Forex of Saudi's is now at a 9-year low report suggest it. All you know that every economy is shrinking due to covid-19 and oil gaint in middle East is also affected due to it. Sad but COVID-19 has broken numerous world economies and the most noticeably awful hit are the oil exporters. Saudi Arabia's forex reserves are exhausting at the rate they don't want to be. The foreigner assets or forex reserves of Saudi Arabia has fallen to 464 billion us dollar by amount of 27 Billions USD. Saudi is oil driven economy and no others source of income so drop of sale in oil causing major economic problems to them. The drop in oil rate per barrel as well as fell in demand from countries facing covid-19 crisis, so there foreign currency is is not meeting the required amount they must have to sustain the country. Thier foreign minister want to take more loans rather spend reserves. What what do you think ok they should do you so the foex reserve go in in upward direction not downward.
2 people like this
4 responses
@louievill (28851)
• Philippines
1 May 20
It could happen to anyone or any country if you put all your eggs in one basket.
1 person likes this
@rajeev075 (1961)
• India
1 May 20
This is truly correct, you can see UAE how they have developed tourism industry and able to sustain economy with some other than just oil.
1 person likes this
@louievill (28851)
• Philippines
1 May 20
@rajeev075 you are right, I was suppose to mention the Emirates too especially Dubai, they know that resources are finite so they diversified while they still have money.
@rajeev075 (1961)
• India
2 May 20
@louievill this one of good way of developing economy as if on sector slow down other will help you out. Emirates as you said have done the same not putting all eggs in one basket. See how they are growing better tha Saudi's. Hope Saudi will understand and analyse situation and do something to overcome the problem as well as do diversification of thier economy.
1 person likes this
• India
9 Jul 20
The price of crude oil is going down but the price of petrol diesel and natural gas goes up. That crude oil is turned into used fuel. All the energy companies are making big profit.
1 person likes this
• Northampton, England
4 May 20
they still have plenty of oil sitting in tankers to be sold in the upturn
@rajeev075 (1961)
• India
6 May 20
Oil will last someday plus now many countries moving to use renewable energy sources so it will be difficulty for them to sell particularly rises in electrical vechile.
• Northampton, England
6 May 20
@rajeev075 Not the poor countries though
@emnuhpe (993)
• Medan, Indonesia
9 Jul 20
I think they know the situation in their country so much that they know what decisions are most appropriate for their country.