Saudi Foreign Reserves Drop in April on Wealth-Fund Transfer

RIYADH—Saudi Arabia’s overseas reserves dropped sharply in April as the kingdom saved its peg with the U.S. greenback continual though transferring a chunk to its sovereign-wealth fund to guess on stocks overwhelmed down by the coronavirus pandemic.

The kingdom’s reserves in current years have hovered about the $500 billion amount, held by its central bank in mostly reduced-hazard property these as U.S. Treasurys. The implied steadiness permitted officials to keep the Saudi riyal’s peg to the greenback and reveal the kingdom’s economical power…