Saudi Arabia’s money supply rises 8.4% to $829bn

RIYADH: Saudi Arabia’s broad money supply climbed 8.4 percent in July from a year earlier, adding SR239.97 billion ($63.9 billion) to reach SR3.11 trillion, driven by higher deposits, official data showed.

The liquidity gauge, known as M3, also advanced 2.1 percent quarter on quarter, rising to SR3.12 trillion by the end of June from SR3.06 trillion in March, the Saudi Press Agency reported, citing central bank figures.

The pickup in money supply comes as the Saudi Central Bank, known as SAMA, balances liquidity management with efforts to support economic activity under Vision 2030.

Shifts in deposit structures also reflect the influence of interest rates and financial incentives on savings behavior.

Demand deposits made up the largest share at 46.5 percent, or SR1.45 trillion, followed by time and savings deposits at SR1.12 trillion, accounting for 36.1 percent. Quasi-monetary deposits stood at SR296.72 billion, while currency in circulation outside banks reached SR242.34 billion.

Saudi Arabia’s money supply rises 8.4% to $829bn

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