The liquidity levels of the Saudi economy significantly grew to SAR 2,823,745 million, or over SAR 2.823 trillion by the end of March 2024, reported Saudi Press Agency (SPA). This growth marked an annual increase of 8.3%, reaching SAR 215 billion, compared to SAR 2,608,319 million in the same period in 2023.
According to the statistical bulletin of the Saudi Central Bank (SAMA) for March, the liquidity levels have witnessed a monthly growth of 2.5%, amounting SAR 67.553 billion, compared to SAR 2,756,193 million in February 2024. These levels are highly significant as they are considered as catalysts for economic and commercial activity. Moreover, they play a central role in the economic development and the growth of the gross domestic product (GDP).
Demand Deposits
The growth of the total money supply (M3) was driven by a significant increase in demand deposits considered the largest contributor to the overall total with approximately 49.8%. SAMA indicated that the demand deposits reached SAR 1,407,114 million, marking an annual growth exceeding SAR 52.722 billion, a 3.9% increase compared to SAR 1,354,392 million at the end of March 2023.
Furthermore, the demand deposits, on a monthly basis, grew by 4.4%, with an increase exceeding SAR 59.864 billion compared to SAR 1,347,250 million at the end of February 2024.
Time and Savings Deposits
Time and savings deposits are the second-largest contributor to the total money supply with about 29.9% (around SAR 843.248 billion). They marked an annual growth exceeding SAR 144 billion, representing a 20.7% increase compared to SAR 698.436 billion at the end of March 2023.
On a monthly basis, they grew by 0.6%, with an increase exceeding SAR 4 billion, compared to SAR 838.533 billion at the end of February 2024.
Currency
As for currency, the circulation process outside banks contributed nearly 8.1% to the total money supply, totaling SAR 227.491 billion. This marked an annual increase exceeding SAR 19.938 billion, reflecting a growth rate of 9.6% compared to SAR 207.553 billion at the end of March 2023.
On a monthly basis, they grew by 4.4%, with an increase amounting about SAR 9.514 billion compared to SAR 217.976 billion at the end of February 2024.
Quasi-money Deposits
The quasi-money deposits contributed to the total money supply with about 12.2% (SAR 345.892 billion). These deposits include resident deposits in foreign currencies, deposits for documentary credits, existing transfers, and repurchase agreements (repos) executed by banks with the private sector.
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