Cash is King: Saudi Arabia Spending Foreign Reserves at Record Speed Read more: http://ift.tt/1bkcxI6 - from TRUNEWS

Saudi Arabia is burning through foreign reserves at an unprecedented pace as the new king’s generosity toward state workers and conflict in the region further strain public finances already damaged by the slump in oil prices.

 The kingdom spent $36 billion of the central bank’s net foreign assets – about 5% of the total assets – in February and March alone, the biggest two-month drop on record, according to data released this week that and obtained by Bloomberg.

Contributing partly to the drop was King Salman’s order to grant government employees and pensioners a two-month bonus after he ascended to the throne of the in January.

Salman’s fledgling reign has been marked by a heightening of the country’s rivalry with Iran – due chiefly to the Saudi-led air offensive in Yemen – as well as mounting security threats at home, two factors that resulted in a surge in military spending.

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