The IMF Executive Board's statement concluding the 2026 Article IV Consultation with the Kingdom commended the prudent liquidity management of the Saudi Central Bank (SAMA), and noted the progress achieved in implementing the recommendations of the 2024 Financial Sector Assessment Program (FSAP), including strengthening precautionary buffers, building a crisis preparedness framework, and implementing the countercyclical capital buffer.
The Fund highlighted the effectiveness of the Kingdom's monetary policy and the resilience of its financial sector in supporting macroeconomic stability, affirming that the fixed exchange rate policy, as represented by pegging the Saudi riyal to the U.S. dollar, continues to provide a credible monetary policy anchor and supports financial stability. The report noted that the Saudi banking sector remains well-positioned to support economic activity and withstand shocks. The report also noted that systemic risks to financial stability remain low, given the banking sector's robust capital and liquidity buffers, as well as the continued improvement in asset quality.
The IMF commended the Saudi Central Bank's continued efforts to safeguard financial stability and mitigate risks through the ongoing monitoring of credit growth and asset quality. The Fund endorsed the proactive approach to mitigating foreign currency funding risks, noting the progress achieved in developing the resolution framework for systemically important institutions and emergency liquidity assistance.
The Fund also lauded SAMA's continued supervisory efforts in combating money laundering and terrorist financing, including through sectoral risk assessments and thematic on-site inspections, as well as the close inter-agency cooperation demonstrated in completing the National Risk Assessment.
The Fund recognized the positive impact of Saudi Vision 2030 and the continued progress in implementing its structural reforms, affirming their contribution to supporting growth and economic diversification, in addition to commending the Kingdom's investments in energy security. The IMF welcomed the efforts of the Kingdom's authorities in monitoring economic developments, coordinating policy responses, rerouting of trade, and strengthen contingency planning.