Bahrains foreign-exchange reserves gained 22% in June to the highest level this year, a temporary relief for the cash-strapped kingdom as it awaits a much-anticipated bailout from its wealthy neighbours.
Reserves climbed to 818.1mn dinars ($2.17bn) in June from 668.6mn dinars in May, according to data from the central bank. The regulator didnt explain the jump.
Its unclear what lies behind the increase, but what is clear is that the situation remains very difficult, said Raza Agha, chief economist for the Middle East and Africa at VTB Capital. Rather than one-time shots in the arm, what Bahrain needs is a multi-year support package.
Bahrain, whose economy was battered by the swings in oil prices, is in talks with Saudi…
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