The total liquidity within the Saudi Arabian financial system has experienced a significant upswing, amassing over SAR 2.823 trillion (approximately $753 billion) by the conclusion of March 2024. The Saudi Central Bank (SAMA) has observed that this uptick in liquidity is indicative of a substantial yearly rise of 8.3 percent, translating to an increase of SAR 215 billion.
Boosting Economic Momentum with Ample Liquidity
The expansive money supply in Saudi Arabia is a testament to the strong liquidity levels, with a notable monthly expansion of 2.5 percent, which equates to SAR 67.553 billion. This solid foundation of liquidity is instrumental in energizing economic and commercial pursuits. It also substantially aids in the enhancement of the gross domestic product (GDP) and furthers the ambitions set forth in Saudi Vision 2030.
SAMA has pinpointed the growth in total money supply as primarily driven by the ascent in demand deposits. These deposits make up the lion’s share of the total, approximately 49.8 percent. Demand deposits have reached SAR 1,407,114 million, marking a yearly upswing of 3.9 percent. Month-to-month, these deposits have seen a 4.4 percent increase, with an augmentation of over SAR 59.864 billion.
The other significant portion of the total money supply is channeled through time and savings deposits, which account for 29.9 percent. These deposits have also seen a marked increase, with savings deposits alone climbing 20.7 percent annually in March, surpassing SAR 44 billion.