Oil price crash pushes Saudi's FX reserves to 9-year lows

The oil price slide is taking a toll on Saudi Arabia's foreign exchange reserves. 

The Kingdom depleted its net foreign assets in March at the fastest clip since at least 2000, showing the severity of the damage inflicted on public finances by the slump in oil prices, according to Bloomberg. 

Reserves fell by more than 100 billion riyals ($27 billion) to $464 billion, the lowest since 2011, according to data compiled by Bloomberg.

Oil prices fell by over 60 percent in the first quarter as the coronavirus pandemic triggered fears of a global economic recession. Brent crude crashed by 50% in March. 

The situation may have worsened for Saudi Arabia in April as Brent fell to around $20 with storage tanks across the globe running out of capacity due to demand destruction. The Kingdom needs a price of $76.1 to balance its budget, according to the International Monetary Fund's estimates.

Saudi Arabia and its allies in OPEC and Russia are scheduled to cut output by 9.7 million barrels per day from May 1.

Saudi Arabia's finance minister has said the government would rely more than anticipated on its reserves and will boost borrowing to 220 billion riyals to help its budget absorb the shock. The Kingdom has already borrowed $19 billion from local and international investors this year, according to data compiled by Bloomberg.