RIYADH, May 8: Saudi foreign currency reserves hit $250 billion mark in March 2007.

The currency reserves reportedly increased by more than $8bn in March to hit their highest level since oil prices started to surge two years ago, figures released by the Saudi Arabian Monetary Agency said on Monday.

Generally, governments work on building their foreign exchange reserves to guarantee flow of their payments balance and fulfill their foreign currency overseas debts as well as accumulate hard currency to enable the economy to face any economic or financial fluctuations.

However, in the case of Saudi Arabia, the move aims to boost the state budgets for the next five years and protect the budget and the economy from possible fluctuations in global oil prices.