Saudi cen bank says not worried about US debt limit

One of the world's top holders of US government bonds not fretting over political deadlock in Washington

Saudi Arabia Central Bank governor Fahad al-Mubarak.

Saudi Arabia Central Bank governor Fahad al-Mubarak.

The central bank of Saudi Arabia, one of the world's top holders of U.S. government bonds, said on Saturday it was not worried by the political deadlock in Washington that could cause the United States to default on its debt.

Asked if he was concerned, central bank governor Fahad al-Mubarak told reporters: "No. They have been there before and it has been resolved." He did not elaborate.

Mubarak was speaking on the sidelines of meetings of Gulf Arab monetary and finance officials in Riyadh.

Saudi Arabia, the world's biggest oil exporter, ploughs much of its earnings back into U.S. assets. Most of the central bank's net foreign assets of $690 billion are believed to be denominated in U.S. dollars, and much of that amount is in the form of U.S. Treasury bonds.

Speaking privately at a meeting in Abu Dhabi earlier this week, some other monetary officials of oil-rich Gulf countries also expressed confidence that Washington would eventually resolve its political impasse without damaging global markets.

The U.S. Congress must agree on a measure to raise the nation's $16.7 trillion debt ceiling by Oct. 17 or risk a U.S. government debt default.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Where is Bahrain headed?

Where is Bahrain headed?

The kingdom has identified jewels in its accelerating non-oil...

4
Trump, Saudi Arabia in mutual embrace

Trump, Saudi Arabia in mutual embrace

US President Donald Trump may not be popular in much of the Muslim...

Most Discussed
sponsoredTracking