Saturday , October 20 2018

Private sector’s deposits with banks down by 0.5 pc

Money supply fell 0.3 percent in August: Central Bank of Kuwait

KUWAIT CITY, Oct 11, (KUNA): Broad money supply (M2) declined by 0.3 percent in August compared with July, recording KD 37.9 billion ($125 billion), according to the Central Bank of Kuwait (CBK).

Private sector’s deposits with local banks in Kuwaiti dinars dropped by 0.5 percent in August to reach KD 33.5 billion (about $110 billion), the economic research department of CBK said in a statistical table, publicized on Thursday.

Deposits in foreign currencies rose one percent in August to KD 2.66 billion ($8.7 billion), bringing total private sector deposits to about KD 36.2 billion ($119.6 billion). Total balances of local banks’ demands on the central bank in Kuwaiti dinar, which is the bank’s July bonds, fell in August by 0.3 percent to reach KD 2.9 billion (some $9.6 billion) Local banks’ total assets fell 0.1 percent to KD 64.4 billion ($212 billion). Net foreign assets at local banks declined by one percent in August to KD 7.1 billion ($23 billion), while long-term deposits with the central bank declined by 1.7 percent in the same month to about KD 1.4 billion ($4.7 billion).

Balance of credit facilities for expatriates (the volume of bank credit granted) decreased by 0.1 percent in August from July’s level, reaching about KD 36.1 billion ($119 billion), while the average interest rate on treasury bills stood at oneyear high at 2.750 percent. Kuwait’s financing of imports declined 19.2 percent in August to reach KD 287 million ($947 million), while the average exchange rate of the US dollar against the dinar, also in August, rose 0.1 percent from July to 302.9 fils per dollar.

The central bank’s total value of assets fell by 0.4 percent in August to KD 10.5 billion ($34.3 billion), while CBK’s net foreign assets fell 0.4 percent to reach KD 10.1 billion ($33.3 billion).

Money supply is a term used to express the quantity and size of money traded in the economy and is divided into two main types of money supply in narrow sense (M1) and money supply in broad sense (M2). Narrow sense is a category of money supply that includes all physical money such as coins and currency, demand deposits and other liquid assets held by the central bank

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