SAMA's Alkholifey on Monetary System, Economy, Inflation

The transcript discusses the central bank's management of financial system liquidity through repo and reverse repo systems, the impact of these rates on economic growth and inflation, and the use of other monetary tools. It also covers the effects of VAT and excise taxes on consumer prices, the participation of foreign banks in Saudi Arabia's economic transformation, concerns about nonperforming loans, and the evolution of the financial system to support Vision 2030.

What is the current gap between the repo and reverse repo rates?

• 100 basis points

• 25 basis points

• 75 basis points

• 50 basis points

Why is the central bank hesitant to raise the repo rate?

• It would widen the rate corridor.

• It would decrease foreign investment.

• It would increase inflation.

• It could risk economic growth.

What is the expected impact of the new VAT on consumer prices?

• Slight increase

• No impact

• Significant increase

• Moderate increase

How many foreign banks currently operate in Saudi Arabia?

• 10

• 12

• 14

• 16

What percentage of the credit portfolio does the construction sector constitute?

• 8%

• 12%

• 5%

• 10%

What is one of the strategies to strengthen the financial system in Saudi Arabia?

• Decreasing insurance consolidation

• Attracting foreign investors

• Increasing cash transactions

• Reducing foreign participation

What is the central bank's approach to non-performing loans?

• Write them off after 180 days

• Ignore them

• Reduce loan issuance

• Increase interest rates