RIYADH: Saudi banks’ money supply M3 reached SR3.09 trillion ($824.3 billion) in May, rising about 9.39 percent from the same period last year.
According to data by the Saudi Central Bank, also known as SAMA, time and savings deposits accounted for 35.16 percent of the total, slightly below the 16-year peak of 35.2 percent recorded in March, but still representing the highest share since 2009.
The expansion has been driven by a marked shift in deposits. Savers are increasingly locking their money into term deposits to take advantage of higher interest rates.
These interest-bearing accounts have grown at the fastest pace among all money categories, reflecting depositors’ preference for higher returns amid a high-rate environment. Term deposits offer better interest in exchange for keeping funds for a fixed period, and therefore tend to gain popularity when interest rates are elevated.
Despite this shift, demand deposits — funds in checking accounts that can be withdrawn on demand — remain the single largest component of the money supply, at around SR1.5 trillion, or roughly 48.6 percent of M3.
