The Saudi Arabian economy demonstrated robust financial health as the liquidity levels soared by the close of March 2024, surpassing SAR 2.823 trillion. This represents an 8.3% year-on-year escalation, translating to an additional SAR 215 billion over the previous year’s liquidity, which was recorded at SAR 2,608 trillion.
A statistical bulletin from the Saudi Central Bank (SAMA) detailed that the broad money supply (M3) encapsulates these liquidity indicators. Compared to the preceding month, the liquidity manifested a 2.5% rise, equivalent to SAR 67.553 billion.
This monetary expansion is pivotal, fueling economic and commercial ventures, propelling GDP growth, and underpinning the ambitious targets set by Saudi Vision 2030. It underscores the resilience of the Kingdom’s banking and financial sectors.
Demand deposits, comprising nearly half of the total money supply at 49.8%, were the primary drivers behind the monetary surge. They climbed to SAR 1,407 trillion, marking a 3.9% year-on-year increase. Month-over-month, demand deposits rose by 4.4%, adding over SAR 59.864 billion.
Time and savings deposits also saw considerable gains. Representing 29.9% of the total money supply, they jumped to SAR 843.248 billion, a significant 20.7% annual increase. Within a month, these deposits modestly advanced by 0.6%, or approximately SAR 4 billion.
Currency in circulation outside banks, accounting for 8.1% of the total, reached SAR 227.491 billion. This figure reflects a 9.6% increase over the same period in the previous year. In just one month, the circulation saw a 4.4% uptick, surpassing SAR 9.514 billion.
Lastly, quasi-money deposits made up 12.2% of the total money supply, amounting to SAR 345.892 billion. These include various forms of deposits such as those in foreign currencies, those linked to documentary credits, as well as existing transfers, and repurchase agreements (repos) conducted by banks with the private sector.