Saudi Arabia’s liquidity levels have hit a new peak, reaching SAR 2,825,715 million ($753.3 billion) by the end of May 2024.
This marks an 8.6% annual growth, with an increase of over SAR 222.928 billion compared to May 2023, when liquidity stood at 2,602,786 million riyals, data from the Saudi Central Bank’s (SAMA) monthly statistical bulletin showed.
Since the start of the year, liquidity has grown by 4%, rising more than SAR 104.757 billion from SAR 2,720,957 million at the end of January. Additionally, liquidity levels achieved a monthly growth of 1.2%, adding approximately SAR 32.402 billion riyals from April’s end.
Breaking down the components of the broad money supply (M3), “demand deposits” were the largest contributor, making up 49.2% of the total money supply at SAR 1,390,893 million by the end of May 2024. “Time and savings deposits” followed, accounting for 31.5% with SAR 889,558 million.
“Other quasi-cash deposits,” including residents’ deposits in foreign currencies and other financial instruments, reached SAR 314,807 million, contributing 11.1%. “Cash in circulation outside banks” was the fourth-largest component, valued at SAR 230,456 million, contributing 8.2% to the total money supply (M3).
These elevated liquidity levels are anticipated to stimulate economic and commercial activities, in line with Vision 2030 objectives.
