Saudi's Efforts to Boost Liquidity Are Failing

The video discusses the liquidity shortage caused by government actions, such as withdrawing bank deposits and borrowing to cover budget gaps due to falling oil prices. It highlights the short-term measures taken by the government, like increasing the loan-to-deposit ratio and injecting money into banks, which have limited impact. The discussion also covers the worsening liquidity situation and its impact on the private sector's ability to raise capital, emphasizing the need for economic reform to shift from government-driven to private sector-driven growth.

What is the main reason for the government's liquidity shortage?

• High inflation rates

• Government withdrawing deposits from banks

• Increased foreign investments

• Rising oil prices

Which measure has the government taken to provide short-term liquidity?

• Selling government assets

• Decreasing interest rates

• Increasing the loan-to-deposit ratio

• Reducing taxes

What is a limitation of the government's current measures to address liquidity?

• They increase inflation

• They are short-term stopgap measures

• They rely on foreign aid

• They are long-term solutions

What is the expected trend for the liquidity situation according to experts?

• It will fluctuate unpredictably

• It will improve rapidly

• It will remain stable

• It will continue to worsen

What challenge does the private sector face in the current economic climate?

• Excessive government subsidies

• High export tariffs

• Overproduction of goods

• Difficulty in raising new capital