Saudi foreign exchange reserves fell to $570bn in June, down 22% from their peak level of $732bn at the end of 2014, as the kingdom continues to raid its savings to maintain investment in its oil and non-oil economies, along with the expense of military operations in neighboring Yemen and in Syria. The government is implementing spending cuts, but its budget still projects a staggering $87bn deficit this year, down from $98bn in 2015 (MEES, 20 May).

Reserves remained unchanged in May, but...