FX.co ★ Saudi Arabia Lifts Reverse Repo Rate to 4.00% as Liquidity Conditions Tighten

Saudi Arabia has raised its reverse repurchase (reverse repo) rate to 4.00%, up from 3.75%, according to data updated on 16 September 2026. The move signals a further tightening in short-term funding costs and reflects an effort to manage liquidity in the domestic money market.

The reverse repo rate, which sets the return banks receive when parking excess funds with the central bank, now stands at its highest level in the current cycle. By increasing this rate, Saudi authorities are likely aiming to influence short-term interest rates, curb excess liquidity, and support monetary stability amid evolving regional and global financial conditions.

The 25-basis-point adjustment will be closely watched by banks, corporates, and investors, as higher short-term rates can filter through to broader borrowing costs, impacting credit demand, investment decisions, and overall financial conditions in the kingdom.