Saudi M3 money supply hits fresh record in May 2019

09/07/2019 Argaam Special

 

Saudi Arabia’s M3 money supply growth rose 5 percent year-on-year (YoY) to a new record of SAR 1.87 trillion in May 2019, data from the Saudi Arabian Monetary Authority (SAMA) showed.

 

This growth is the highest since November 2015, driven by driven by higher demand and time deposits, as well improved lending by banks, the Kingdom’s central bank said.

 

The loans provided by banks to the private sector hit an all-time high of SAR 1.47 trillion – a rise of 3 percent YoY, it added.

 

Money Supply Index (M3) (SAR bln)

Period

May 2018

May 2019

Variation

Money Supply M3

1,779

1,867

+5%

 

M3 money supply rose at a compound annual growth rate (CAGR) of 7 percent in the last decade.

 

Money Supply M3 for May Since 2010 (SAR bln)

Period

Money Supply

Variation

2019

1,867

+5%

2018

1,779

+1%

2017

1,769

+0.4%

2016

1,762

(3%)

2015

1,818

+10%

2014

1,648

+12%

2013

1,470

+16%

2012

1,265

+8%

2011

1,175

+16%

2010

1,012

+3%

 

The following is Saudi Arabia’s M3 monthly growth between 2018 and 2019:

 

Monthly Money Supply (M3) Growth (SAR bln)

Month

2018

2019

Variation

May

1,779

1,867

+5%

April

1,785

1,835

+3%

March

1,782

1,813

+2%

February

1,788

1,816

+2%

January

1,795

1,815

+1%

 

M3 money supply growth, includes demand and time deposits along with currency outside banks. The following is Saudi Arabia’s M3 money supply growth since January 2019:

 

Money Supply (M3) Breakdown in 2019 (SAR bln)

Month

Demand deposits

Time deposits

Other deposits

Cash circulating outside banks

Total

May

1,057.3

439.2

173.2

196.9

1,866.5

April

1,052.2

423.2

174.1

185.8

1,835.3

March

1,033.4

425.5

169.8

184.7

1,813.4

February

1,032.2

431.2

170.2

182.3

1,815.9

January

1,034.1

429.7

170.1

181.1

1,815.0

 

The Kingdom’s M3 money supply growth was mainly attributed to a 3 percent YoY rise in demand deposits– which mainly represent current accounts – to SAR 1.057 trillion, or 57 percent of total deposits.

 

Saudi Banks’ Demand Deposits  (SAR bln)

Month

2018

2019

Variation

May

1,031.5

1,057.3

+3%

April

1,033.8

1,052.2

+2%

March

1,011.0

1,033.4

+2%

February

1,008.0

1,032.2

+2%

January

1,024.5

1,034.1

+1%

 

Time and savings deposits increased 8 percent YoY to SAR 439.2 billion in May.

 

Saudi Banks’ Time Deposits and Savings Deposits  (SAR bln)

Month

2018

2019

Variation

May

405.7

439.2

+8%

April

404.9

423.2

+5%

March

430.1

425.5

(1%)

February

428.3

431.2

+1%

January

427.8

429.7

+0.4%

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