Saudi Gold Reserves Over Twice Previous Estimate

A new report by the World Gold Council indicates that the Saudi Arabian Monetary Agency's gold reserve figure is 322.9 tons compared to 143 tons reported in March.

The council said its gold data was "modified from the first quarter 2008 as a result of the adjustment of the SAMA's gold accounts."

It is not clear if this means SAMA added to their gold reserves or whether it is simply an accounting move whereby previously held Saudi gold is now being counted as SAMA reserves.

Based on the new reserve numbers, SAMA's total official holdings of gold are worth about $14.33 billion, or roughly 3.5 percent of the country's total $413 billion in foreign assets.

IMF to Saudis: Quit Bailing Out the Dollar By Creating Domestic Inflation

International Monetary Fund officials said the peg of the Saudi riyal to the U.S. dollar has been a great “anchor” for the Persian Gulf but recommended that Saudi officials consider alternative exchange rate regimes if inflation worsens.

“Most directors considered the benefits of maintaining the peg to outweigh the cost of higher short-term inflation, provided current inflationary pressures prove temporary,” IMF board directors said in a report on Saudi Arabia released Tuesday. “If, however, inflation should persist and the Gulf Cooperation Council monetary union be delayed, they recommended to consider also alternative
exchange rate regimes.”