Oil revenues are down for the Saudis - what are they doing? From the UK Financial Times:
Saudi Arabia burns through foreign reserves
Saudi Arabia is burning through its foreign reserves at a record rate, as the kingdom seek to maintain spending plans despite lower oil prices.
The central bank’s foreign reserves have dropped by $36bn, or 5 per cent, over the past two months, as newly crowned King Salman bin Abdulaziz Al Saud dips into Riyadh’s rainy-day fund and increases domestic borrowing to fund public-sector salaries and large development projects.
The latest data show Saudi’s foreign reserves dropped by $16bn to $708bn in March, driven by public-sector bonuses paid by King Salman after he assumed power in January. This follows a fall of $20bn in February. Saudi has spent $47bn of foreign reserves since October.
5% in two months and it is being spent on bonuses? Now would be the time to retrench and cut spending, not increase it. They don't know when the OPEC monopoly will resume, if...