The Clap
The Saudi Central Bank (SAMA) raised the rate of repurchase agreements “Repo” by 75 basis points, to reach 3.75, and reverse repurchase agreements by 75 basis points, to become 3.25%.
The Deets
SAMA followed in the footsteps of the Fed, which recently raised interest rates by 0.75% for the third time in a row, due to the correlation between the riyal and the dollar.
Repo
The repo rate represents the lending rate from SAMA to banks, while the reverse repurchase agreement rate (reverse repo) represents the deposit rate.
Why this Matters
The Bank’s recent decisions come within its objectives to maintain the monetary and financial stability of KSA in light of global developments.
Saudi Central Bank raises “Repo” & “Reverse Repo” prices 🏦
