IMF praises Saudi Central Bank's liquidity management

The executive directors of the International Monetary Fund, in a statement concluding the 2026 Article IV consultations with Saudi Arabia, praised the prudent liquidity management of the Saudi Central Bank (SAMA). They also noted progress in implementing recommendations from the 2024 Financial Sector Assessment Program, including strengthening preventive measures, building crisis response frameworks, and applying countercyclical capital buffers.

The IMF highlighted the effectiveness of Saudi Arabia’s monetary policy and the resilience of its financial sector in supporting economic stability. The fixed exchange rate policy, pegging the Saudi riyal to the US dollar, was said to enhance monetary policy credibility and support financial stability. The report also noted that the Saudi banking sector remains well-positioned to support economic activity and withstand shocks, with systemic risks to financial stability remaining low. The sector’s strong capital and liquidity levels bolster its ability to absorb current developments, alongside continued improvements in asset quality.

The IMF commended the Saudi Central Bank for its ongoing efforts to strengthen financial stability and mitigate risks through continuous monitoring of credit growth and asset quality. It also supported SAMA’s proactive approach to limiting risks associated with foreign currency borrowing, and noted progress in developing frameworks for handling systemically important institutions and emergency liquidity assistance.

The IMF further praised SAMA’s intensified supervisory efforts to combat money laundering and terrorist financing, including conducting sectoral risk assessments, targeted on-site inspections, and close cooperation among government agencies to complete the national risk assessment. These efforts are part of ongoing initiatives to enhance understanding of money laundering, terrorist financing, and proliferation financing risks in the Kingdom.

The IMF noted the positive impact of Saudi Vision 2030 and the ongoing implementation of its structural reforms, confirming their contribution to supporting economic growth and diversification. The report also highlighted the Kingdom’s investments in energy security.

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The IMF welcomed the efforts of Saudi authorities in monitoring economic developments, coordinating response measures, redirecting trade flows, and enhancing contingency planning.