SAUDI ARABIA

The Saudi government’s foreign exchange reserves with the Saudi Arabian Monetary Agency (SAMA) are slowly shrinking, as the government maintains a high level of spending, despite the plunge in oil prices in the first four months of 2015.

This high state spending continues despite a warning by the IMF to the Gulf states to cut spending on wages and subsidies in order to prevent the draining of state reserves. But some of these countries like Saudi Arabia, Kuwait and the...