01/08/2024
01/08/2024
KUWAIT CITY, Aug 1: Kuwait’s foreign reserves have fallen to their lowest level since January 2024, reflecting a significant decrease in the country’s reserve assets, reports Al-Seyassah daily. The daily quoting sources said as of the end of June 2024, Kuwait’s official reserve assets amounted to 14.279 billion dinars ($46.806 billion). This is a decrease of 4.38% annually, which equates to a reduction of 661 million dinars ($2.166 billion).
In June 2023, Kuwait’s reserves were at 15.089 billion dinars ($49.461 billion). By May 2024, reserves had dropped to 14.591 billion dinars ($47.829 billion). Since the beginning of 2024, reserves have decreased by 1.31% from their end-of-2023 level of 14.620 billion dinars ($47.858 billion). The decline is attributed to a reduction in the “foreign currency and deposits abroad” component, which was 12.808 billion dinars in June 2024. This figure is down 4.73% from June 2023 and 1.32% from May 2024.
This decrease in reserves could impact Kuwait’s financial stability and its ability to manage external shocks, highlighting the need for strategic adjustments in financial policies. Meanwhile, the Central Bank of Kuwait has announced that the broad money supply (M2) remained steady at 40.1 billion Kuwaiti dinars (approximately $131 billion) as of June 2024. This figure reflects a stable monetary environment, maintaining the same level as the previous month.
According to the Central Bank’s Economic Research Department, private sector deposits in local banks increased slightly by 0.2% in June, reaching 36.6 billion dinars (around $119.6 billion). This growth indicates a modest rise in liquidity within the domestic economy. Moreover, deposits held by the private sector in foreign currencies rose by 0.1%, totaling 1.85 billion dinars (approximately $6 billion). This small increase highlights ongoing international financial activity and foreign currency reserves. However, the total balances of local banks’ claims on the Central Bank, represented by Central Bonds, saw a notable decrease of 7.2%, dropping to 2.9 billion dinars (about $9.5 billion). This decline may suggest a reduction in central bank securities or a shift in investment preferences.