IMF Commends SAMA's Monetary Management and Saudi Financial Sector Resilience

The International Monetary Fund (IMF) Executive Board, at the conclusion of its 2026 Article IV Consultation with Saudi Arabia, praised the Saudi Central Bank's (SAMA) prudent liquidity management and highlighted progress in implementing the 2024 Financial Sector Assessment Program recommendations, including strengthening preventive measures, building a crisis management framework, and activating the countercyclical capital buffer.

 The IMF noted the effectiveness of the Kingdom's monetary policy and the resilience of its financial sector, emphasizing that the fixed exchange rate policy linking the Saudi Riyal to the US Dollar enhances monetary policy credibility and supports financial stability.

 The IMF affirmed that systemic risks to financial stability remain low, with the banking sector benefiting from strong capital and liquidity levels that enhance its capacity to absorb shocks and support economic activity.

 The IMF commended SAMA's efforts to bolster financial stability through ongoing monitoring of credit growth, reducing risks associated with foreign-currency borrowing, and intensifying supervisory efforts to combat money laundering and terrorist financing.

 The IMF also highlighted the positive impact of Saudi Vision 2030 and ongoing structural reforms in driving economic growth and diversification, while praising the Kingdom's investments in energy security.