Saudi CB tightens lending curbs

Saudi Arabia's central bank confirmed on Tuesday it had raised bank reserve requirements to 12 per cent from 10 per cent beginning from the first week of April.


Traders said on Monday the Saudi Arabian Monetary Agency (SAMA) had tightened bank lending curbs for the third time since November to help stem money supply growth as inflation in the largest Arab economy surges.


The reserve ratio refers to the amount of money banks must keep in their vaults. SAMA made the statement on its website.


Inflation in the largest Arab economy surged to a 27-year peak of 8.7 per cent in February. (Reuters)