Bahrain Reserves Tumble as BofA Expects Gulf to Demand Action
- IMF warned that Bahrain needs to make cuts in fiscal spending
- Bahrain foreign assets down 71% from peak in November 2014
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Bahrain’s foreign-currency reserves tumbled 11 percent in February, extending a decline that has fueled speculation that the island kingdom would either tap international bond markets soon or seek financial support from other Gulf Arab monarchies.
Net foreign assets dropped to 645.2 million dinars ($1.7 billion), from 725.9 million dinars in January, according to central bank data released on Sunday. Overall, they’re down 71 percent from a peak of 2.24 billion dinars in November 2014.