Localization in Saudi military industries rises to 19.35%    Logistics park for vehicles worth SR300 million to be set up at Dammam port    Commerce Ministry recalls 6,500 Genesis cars due to risk of fire    HONOR KSA expands its presence with new flagship Experience Store in Riyadh HONOR's first flagship store in KSA provides visitors with a premium experience, exciting offers and free services    Saudi, Iranian foreign ministers discuss Oman-mediated talks with US    Prince Sultan University launches first bachelor's program in language and media    Al-Falih: Eastern Province hosts 700 investment opportunities worth SR330 billion    India demolishes houses of 10 alleged militants days after deadly Kashmir attack    Yemen's Houthis claim dozens killed in US strike on prison holding African migrants    Putin announces three-day Russian ceasefire in Ukraine from 8 May    Crown Prince donates SR1 billion to support housing for eligible families    Suspect charged after Vancouver car ramming leaves 11 dead    Rock & Roll Hall of Fame picks Outkast but not Oasis    Makkah police arrest Yemeni and Egyptian suspects of fake Hajj campaign    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Kingdom money supply growth eases
Published in The Saudi Gazette on 04 - 01 - 2009

Annual growth in Saudi Arabia's money supply slowed in November to its lowest level in at least a year, official data showed on Saturday, despite bold moves to inject cash into the banking system to keep the economy growing.
The annual growth of M3, the broadest measure of money circulating in the economy, slowed to 19.2 percent in November from 20.2 percent in October, according to data published on the website of the Saudi Arabian Monetary Agency (SAMA).
M3 rose to SR919.3 billion ($245.1 billion) by end-November, compared with SR771 billion a year earlier, the SAMA data showed.
Annual growth in money supply was 19.4 percent in September and 21.8 percent in August.
Analysts had widely been expecting money supply growth to pick up pace in November after SAMA engaged in an aggressive rate cut policy.
“There is a slowdown in the private sector and this partly reflects on the credit growth,” said John Sfakianakis, chief economist at SABB bank, HSBC's Saudi subsidiary.
On Oct. 12, SAMA reduced the repo rate by 50 basis points to 5 percent and also lowered reserve requirements to 10 percent from 13 percent, a move that was expected to release about SR10 billion to commercial banks.
Nine days later SAMA poured $3 billion in deposits into the banking system to ease liquidity pressures. It was SAMA's first injection of US dollars in a decade.
SAMA again cut the repo rate twice after Oct. 12 to 3 percent and cut reserve requirements to 7 percent.
“The decline in money supply's growth shows the credit challenges in the banking system ... banks are not lending at the same rate of two quarter ago ... because deposit growth has not been commensurate to lending growth,” Sfakianakis said.
Money supply growth is an indicator of future inflation, which in Saudi eased to 9.5 percent in November from 10.9 percent in August.
The central bank's net foreign assets stood at SR1.66 trillion at the end of November, the central bank said.
That compared with SR1.65 trillion at the end of October.


Clic here to read the story from its source.