The liquidity of the Saudi economy surged to its highest level by the end of March 2024, reaching a staggering SR2.82 trillion, as revealed in the monthly statistical bulletin of the Saudi Central Bank (SAMA).
This remarkable figure reflects an impressive annual growth rate of 8.3%, representing an increase of over SR215 billion compared to the same period in 2023 when it stood at SR2.61 trillion.
The monthly data indicates a 2.5% increase in liquidity, amounting to approximately SR67.5 billion compared to the end of February 2024.
The substantial growth in liquidity is primarily attributed to the rise in total money supply (M3) and demand deposits, which contribute significantly to the total money supply. Demand deposits alone constitute nearly 49.8% of the total, amounting to SR1.41 trillion, with an annual growth rate of 3.9%.
Additionally, time deposits and savings deposits witnessed a notable increase, contributing 29.9% to the total money supply, amounting to SR843.2 billion, marking an annual growth rate of 20.7%.
Cash in circulation outside banks also saw significant growth, contributing approximately 8.1% to the total money supply, reaching SR227.5 billion with an annual growth rate of 9.6%.
Furthermore, other quasi-cash deposits, including resident deposits in foreign currencies and repurchase operations, accounted for approximately 12.2% of the total, amounting to SR345.9 billion.
The surge in liquidity is seen as a positive indicator, supporting economic and commercial activities and contributing to the goals of Saudi Vision 2030, reflecting the strength and resilience of the banking and financial sector in the Kingdom.
