The Supreme Economic Council (SEC) met yesterday to discuss the global financial crisis and its potential impact on the Saudi economy. The meeting was chaired by Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz.
In a statement after the meeting, Acting Secretary-General Dr. Abdulrahman Al-Tuwaijri said that the SEC expects the global financial crisis to have a limited impact on the Saudi economy.
The SEC approved several measures aimed at mitigating the impact of the crisis on the Kingdom’s economy, Al-Tuwaijri said.
It directed the Saudi Arabian Monetary Agency (SAMA) to continuously monitor Saudi banks, guarantee their well-being by providing liquidity when needed. The Kingdom’s central bank will guarantee bank deposits.
The SEC also decided that SAMA would reduce the reserve requirements if Saudi banks faced liquidity problems and cut down the cost of financing.
Finally, Gulf Cooperation Council (GCC) finance ministers and central bank governors were invited to coordinate their actions with the Kingdom’s efforts.