Saudi Arabia has done relatively well in managing inflation, with consumer prices rising 2.2 percent last month, but Saudis are beginning to feel the impact of rising prices. The royal court ordered about $2.8 billion in direct payments to people enrolled in social security and the citizens’ account, a basic income program, the statement said. The rest will be used to “accumulate strategic stocks of essential goods”, the official state news agency reported on Monday. Muslim pilgrims shop at a market in the holy city of Mecca, Saudi Arabia on Monday © AFP via Getty Images The decision came after an economic affairs committee headed by Crown Prince Mohammed bin Salman, the country’s day-to-day leader overseeing the country’s economic reforms, conducted a study on global prices and their potential impact on Saudis, the statement said. Saudi Arabia, the world’s largest oil exporter, has traditionally linked crude price volatility to government spending. It has been one of the main beneficiaries of high oil prices this year. But after posting a $15 billion surplus in the first quarter of this year, the finance minister said the government intended to use the money to boost its wealth fund and shore up government reserves as it moves ahead with plans to shake up its economy dependent on oil. . The country’s foreign exchange reserves have fallen to $453 billion, from a peak of $700 billion in 2014. It also has about SR338 billion ($90.1 billion) in local currency reserves.
