A Growing Economic Crisis Within Saudi Arabia

Economic officials in Saudi Arabia try to control the crisis by injecting money into the economy.

Saudi Arabia

(SALEM, Ore.) - The British ambassador in Riyadh, in a consultative meeting with English producers and investors in the Middle East, said Saudi authorities have made a grave mistake in their calculations.

According to inside information, a lack of foresight of the consequences of falling oil prices; from $104 a barrel to $50 a barrel, has practically cut the country's foreign exchange budget in half.

The timing is bad as the Saudis attempt to fund regional crises, particularly the war in Yemen. Over the next year, withdraws of foreign exchange reserves and their deposit accounts in the US and Britain will gradually show uncontrollable effects within Saudi Arabia's economy and society.

Economic officials in Saudi Arabia withdraw $7 billion each month to finance the country;s budget deficit as well.

Saudi Arabia's central bank says the country's foreign exchange reserves have fallen from 746 billion dollars to 672 billion dollars in the last 9 months that is sounding alarm bells in Saudi Arabia.

In this regard, the Saudi stock market has suffered losses of more than four billion dollars during the last 8 months. This situation was unprecedented in the Saudi stock market.

Saudi citizens are extremely concerned about the country's economic situation and their market is filled with fear. Investors intend to withdraw their deposits from all domestic banks and transfer them to foreign banks in different countries.

Economic officials in Saudi Arabia try to control the crisis by injecting money into the economy.