Saudi Gazette Report

RIYADH — The liquidity of Saudi economy continued robust growth reaching its peak at the end of March 2024, at the level of SR2,823,745 million. This figure shows annual growth rate of 8.3 percent, amounting to more than SR215 billion, compared to the end of the similar period in the year 2023, which stood at SR2,608,319 million. This data was revealed in the monthly statistical bulletin of the Saudi Central Bank (SAMA) for the month of March 2024.

The liquidity levels also achieved a monthly growth estimated at 2.5 percent, an increase amounting to about SR67553 million, compared to what they were at the end of February 2024 at the level of SR2,756,193 million. These levels of liquidity of all kinds are supportive of economic and commercial activity and mobility, an effective contributor to the process of economic development, a strong catalyst for GDP growth, and an enabler of achieving the goals of Saudi Vision 2030, thereby reflecting the solidity and durability of the banking and financial sector.

This growth in liquidity is mainly attributed to the rise in the total money supply (M3) and the rise in demand deposits, which are the largest contribution to the total money supply by a rate representing approximately 49.8 percent, with a value amounting to SR1,407,114 million. It achieved annual growth of more than SR52,722 million, an increase of 3.9 percent compared to SR1,354,392 million at the end of March 2023.

The monthly growth is estimated at 4.4 percent, with a monthly increase amounting to more than SR59,864 million, compared to 1,347,250 million, at the end of February 2024.

Time deposits and savings deposits, which are the second largest contribution to the total money supply, increased by a contribution rate of 29.9 percent, with a value amounting to SR843,248 billion , as it achieved annual growth with a value exceeding SR144 billion. This marked an increase rate estimated at 20.7 percent compared to SR698436 million by the end of March 2023. It also grew on a monthly basis by 0.6 percent, with an increase value exceeding SR4 billion, compared to SR838,533 million at the end of February 2024.

Cash in circulation outside banks has contributed to the total money supply by approximately 8.1 percent, with a value amounting to SR227,491 million, increasing annually by approximately more than SR19,938 million, with an annual growth rate estimated at 9.6 percent, compared to SR207,553 million at the end of March 2023. It also achieved a monthly growth estimated at 4.4 percent, an increase amounting to approximately more than SR9,514 million, compared to SR217,976 million at the end of February 2024.

While other quasi-cash deposits recorded a contribution rate to the total representing approximately 12.2 percent, with a value amounting to SR345,892 million. It is noteworthy that quasi-cash deposits consist of resident deposits in foreign currencies, deposits against documentary credits, existing transfers, and repurchase operations (repo) carried out by banks with the private sector.