Saudi Gazette report

RIYADH — Saudi Arabia’s liquidity levels (available cash) achieved a growth of more than SR247,647 billion on an annual basis, or by 9.2%, to reach SR2,936,089 million by the end of October of 2024, compared to the same period 2023, when it amounted to SR2,688,442 million.

These levels reflect the money supply in its broad and comprehensive sense (M3). This was shown in the data of the monthly statistical bulletin of the Saudi Central Bank for October 2024.

Comparing liquidity levels on a quarterly basis, they recorded a growth of 1.5%, which is an increase of nearly SR45 billion, to reach SR2,943,661 million by the end of Q3 of 2024, compared to SR2,898,706 million by the end of Q2 of the same year.

The liquidity levels achieved a growth of 8%, with an increase exceeding SR215 billion, compared to its levels in January 2024, which was SR2,720,957 million.

By reviewing the four components of the money supply (M3) in its broad and comprehensive concept, “demand deposits” recorded the largest contribution to the total at 49%, with a value of SR1,425,489 million by the end of October 2024, while “time and savings deposits” recorded SR971,103 billion — the second largest contributor to the total money supply (M3) at 33%.

“Other quasi-monetary deposits” reached SR312,506 billion, contributing 11% to the total money supply (M3), making it the third largest contributor.

Fourth came “cash in circulation outside banks” with a value of SR226.991 billion, with a contribution rate of about 8%.

Quasi-cash deposits include residents’ deposits in foreign currencies, deposits against documentary credits, outstanding transfers, and repurchase (repo) operations conducted by banks with the private sector.

It's important to note that domestic liquidity encompasses cash circulating outside banks, in addition to demand deposits, time and savings deposits, and a broader definition that includes other quasi-cash deposits.