Brand of the Central Financial institution of Saudi Arabia
The Saudi Central Financial institution, SAMA, determined to cut back the speed of reverse repurchase agreements (reverse repo) by 25 foundation factors from 425 foundation factors to 400 foundation factors, and to cut back the speed of repurchase agreements (repo) by 25 foundation factors as effectively, from 475 foundation factors to 450 foundation factors.
The Saudi Central Financial institution mentioned in an announcement at the moment that this determination is in line with its objectives of sustaining financial stability within the context of world developments.
As we speak, the US Federal Reserve determined to cut back the rate of interest by 25 foundation factors to a variety between 3.75% and 4.00%, in comparison with its earlier degree of 4.00% and 4.25%.
The value of reverse repurchase agreements (reverse repo) represents the rate of interest that banks obtain when depositing their funds with the central financial institution, whereas the worth of repurchase agreements (repo) represents the lending fee from the central financial institution to banks.
The Saudi Central Financial institution often follows the instance of the US Federal Reserve Financial institution in altering rates of interest on the riyal, because of the hyperlink between the 2 currencies, the riyal and the greenback.
