KUWAIT CITY, Sept 3: The Central Bank of Kuwait (CBK) reported on Tuesday that the broad money supply (M2) fell by 0.4% in July, reaching KD 39.9 billion (approximately USD 131 billion) compared to the previous month. According to statistical data from the CBK’s Economic Research Department, private sector deposits in local banks, denominated in Kuwaiti dinars, also decreased by 0.3%, totaling KD 36.5 billion (around USD 120.6 billion).

Additionally, private sector deposits in foreign currencies dropped by 1.2% to KD 1.82 billion (around USD 6 billion). The total balances of local banks’ claims on the CBK in dinars, represented by CBK bonds, saw a 6.8% decline, amounting to KD 2.7 billion (around USD 8.9 billion). Meanwhile, the total assets of local banks decreased by 0.7% in July, standing at KD 87.9 billion (approximately USD 290 billion).

However, net foreign assets of local banks rose by 1%, reaching KD 13.4 billion (around USD 44 billion). Time deposits at the CBK experienced a significant increase of 9.7%, totaling KD 1.1 billion (about USD 3.6 billion). On the other hand, cash credit facilities (loans) decreased by 0.8%, amounting to KD 55.3 billion (around USD 182.4 billion). The report also noted that the average interest rates on one-year treasury bonds remained stable at 4.625% in July.

Additionally, financing for Kuwaiti imports increased by 24%, reaching KD 786.4 million (around USD 2.5 billion). The average exchange rate of the US dollar against the Kuwaiti dinar slightly decreased by 0.2%, standing at 305.9 fils. The CBK explained that money supply in its narrow sense (M1) refers to the total volume of currency used in daily transactions, including cash and demand deposits. In contrast, broad money supply (M2) includes these, as well as time deposit accounts and savings accounts. (KUNA)