Saudi Arabia Injects $5.3 Billion Into Banks to Ease Crunch
- Funds are in the form of time deposits, central bank says
- Central bank also introducing 7-day, 28-day repo agreements
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Saudi Arabia’s central bank stepped up efforts to support lenders in the Arab world’s biggest economy as they grapple with the effects of low oil prices. Banks’ shares advanced.
The Saudi Arabian Monetary Agency, as the central bank is known, is giving banks about 20 billion riyals ($5.3 billion) of time deposits “on behalf of government entities.” It’s also introducing seven-day and 28-day repurchase agreements, as part of its “supportive monetary policy.” It didn’t provide further details.