₦airaland Forum

- Funds are in the form of time deposits, central bank says
- Central bank also introducing 7-day, 28-day repo agreements

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.

The announcement, which comes as the kingdom prepares for its first international bond sale, is the latest step by the central bank to ease a cash crunch in the banking system. The Saudi Interbank Offered Rate, a key benchmark for pricing loans, has surged to the highest in seven years after the plunge in oil prices forced the government to withdraw money from the country’s banking system, squeezing liquidity. The central bank was said to have offered lenders 15 billion riyals in short-term loans in June to help ease liquidity constraints.
‘Next Step’

The move is “the next step in the continuing story we’ve been hearing since the start of the year on the tightening of liquidity among Saudi banks and a follow-on to the first injection provided to banks earlier this year,” said Murad Ansari, a Riyadh-based analyst at investment bank EFG-Hermes. “The liquidity situation remains challenging. However, it shows that the central bank will continue to support Saudi banks.”
The Saudi index for banking shares climbed 1.3 percent, the biggest intra-day gain in three weeks, at 10:53 a.m. in Riyadh. The benchmark Tadawul All Share Index advanced 0.8 percent.

Apostolos Bantis, a Dubai-based credit analyst at Commerzbank AG., said authorities probably wanted to address concerns among investors before the planned Eurobond sale, which people familiar with the matter said would be at least $10 billion.
The latest step “will show investors that the government is committed to support the banking system,” he said. The bond sale would help finance a budget deficit that the International Monetary Fund expects to reach about 13 percent of economic output this year.
The cash crunch risk undermining bank’s ability to lend to businesses, adding to the strain facing economic growth at a time when the government is cutting spending to shore up its public finances. The economy will likely expand 1.1 percent in 2016, according to a Bloomberg survey, the slowest pace since 2009.

The central bank has already raised the limit of how much banks can lend to 90 percent of deposits from 85 percent, people familiar with the matter told Bloomberg in February. It also cracked down on currency traders amid speculation that the country won’t be able to maintain the riyal’s peg to the dollar, people with knowledge of the matter said. The central bank has repeatedly said it was committed to the peg.
Funding Requirements
“Sama is being proactive to ensure liquidity meets economic and financial requirements, said Monica Malik, chief economist at Abu Dhabi Commercial Bank, using an acronym for the central bank.
“This will provide a breather to the banks and the planned sovereign bond issue will also help. However the government’s funding requirements are much larger and the issue of tight liquidity is likely to persist.’’

Nyceguy92:
Do not allow the desperation to lead you into proposing to the wrong person.
For me I never felt like I was late to marry...
I was busy working and pushing my bank balance up to care.
In fact, it was the elderly women in our family that hinted marriage to me though I had began to think about it.
Go out more to public places and functions and try and start non-committal conversations with ladies that catch your fancy.
I met my wife at a Corpers Week where I was invited to give a talk.
After the ceremony, I joined a group of female corpers to walk back home.
We chatted, joked, laughed, etc.
I spotted her in the group and then brought out all my "ammunition."
She later confessed she felt a certain chemistry when she saw me in the hall.
We are so so happy together.
The thing is, first, be friends, then lovers if they meet with your ideals.
Please do not give a lady ideas or make promises in the beginning so nobody will say you dumped her if the friendship didn't work.
Good luck.

hahn:
Where have you been?

madenigga:
why is it that when it reached the turn of the south, you added ministers to it, y dont u also add ministers from the north to northern list.
note this federal character u re making noise about it was d north that brought about it and hv always been the ones championing it until of recent.
if this ur meritocracy was smhw tilted towards d south u wud see how d north wud be making noise up nd down

mysticgal:
Thank you, and I won't stop believing.

He is not a patron to any organization, group or association.