S. Arabia’s liquidity up by 8.3% in Nov ’24

Saudi Arabia’s liquidity levels grew significantly in 2024, reaching SAR2,945,656 million by November, a 10.3 per cent annual rise of SAR275,155 million compared to the same period in 2023, according to the Saudi Central Bank’s (SAMA) monthly statistical bulletin.

Liquidity increased by 0.3 per cent monthly and 8.3 per cent year-to-date, underscoring its vital role in driving economic and commercial activity.

Demand deposits dominated the broad money supply (M3), comprising 48.8 per cent or SAR1,436,392 million, followed by time and savings deposits at 33.6 per cent (SAR989,986 million). Quasi-cash deposits accounted for 9.9 per cent (SAR292,630 million), while currency in circulation outside banks contributed 7.7 per cent (SAR226,647 million).

Quasi-cash deposits include foreign currency holdings, deposits secured by letters of credit, ongoing transfers, and bank repurchase agreements. The M3 measure, incorporating M1 and M2 components, highlights Saudi Arabia’s strong liquidity performance and its impact on the nation’s economic growth trajectory.

Attribution: Amwal Al Ghad English & SPA

Subediting: Y.Yasser