Saudi Arabia's central bank has said that the economy of the world's largest oil exporter is facing "no problems" with liquidity and that stock market declines are "unwarranted".

Muhammed Al-Jasser, the vice governor of the Saudi Arabian Monetary Agency (Sama), said the central bank had the means to deal with any liquidity issues and was ready to provide sufficient liquidity if needed. His comments were carried by the state news agency SPA.

Bank deposits were safe and economic growth healthy, he said, adding that Saudi Arabia had no exposure to troubled Western banks and had yet to use several instruments at its disposal including repurchase rate moves. - Reuters