Authorities of Saudi Arabia decided to sell Canadian assets. The central bank and pension funds of Saudi Arabia that sell their securities abroad to sell Canadian securities, bonds and money market instruments “regardless of their value.”
On Monday, August 6, Saudi Arabia announced the suspension of “all new business and investment operations” with Canada, as well as the expulsion of the country’s ambassador from the sovereign within 24 hours. This decision was in response to the call of the Foreign Minister of Christia Freeland to immediately release detained civil activists. Riyadh condemned her statement as interference in internal affairs.
According to the FT, Saudi Arabia has allocated more than $ 100 billion to management companies to invest in global markets. According to one source, the share of the investment in Canadian assets was probably “low enough”, but such a decision of the country carries a strong message.
By deciding to sell Canadian assets, Riyadh demonstrates the financial and political power of an anonymous banker.
On Tuesday, August 7, Saudi Arabia refused to purchase Canadian wheat. European traders confirmed that they received an official notification from the main state agency for the purchase of wheat of the kingdom.