Saudi Economy’s Liquidity Reaches High of SAR 2.824 Trillion in March

The liquidity levels of the Saudi economic system experienced significant growth by the end of March 2024, reaching SAR 2,823,745 million, or over SAR 2.823 trillion.

This marked an annual increase of 8.3%, amounting to SAR 215 billion compared to the same period in 2023, when liquidity stood at SAR 2,608,319 million.

The broad money supply (M3), as indicated in the statistical bulletin released by the Saudi Central Bank (SAMA) for March, reflects these liquidity levels.

Liquidity achieved a monthly growth of 2.5%, equivalent to SAR 67.553 billion, compared to SAR 2,756,193 million in February of this year.

These liquidity levels, in all their forms, play a crucial role as catalysts for economic and commercial activity. They actively contribute to the path of economic development and serve as strong drivers for gross domestic product (GDP) growth.

Moreover, they contribute to the accomplishment of the objectives outlined in Saudi Vision 2030, highlighting the resilience and strength of the banking and financial sector.

The surge in the total money supply (M3) is primarily attributed to the increase in demand deposits, which represent the largest contributor to the overall total, at about 49.8%.

Demand deposits reached a value of SAR 1,407,114 million, reflecting an annual growth exceeding SAR 52.722 billion, a 3.9% increase compared to SAR 1,354,392 million at the end of March 2023.

On a monthly basis, demand deposits experienced a growth rate of 4.4%, with an increase exceeding SAR 59.864 billion compared to SAR 1,347,250 million at the end of February 2024.

Time and savings deposits, the second-largest contributor to the total money supply, accounted for around 29.9% and had a value of around SAR 843.248 billion.

These deposits also witnessed a surge, with an annual growth exceeding SAR 144 billion, representing a 20.7% increase compared to SAR 698.436 billion at the end of March 2023.

On a monthly basis, they grew by 0.6%, with an increase exceeding SAR 4 billion, compared to SAR 838.533 billion at the end of February 2024.

Currency in circulation outside banks contributed around 8.1% to the total money supply, totaling SAR 227.491 billion. It experienced an annual increase exceeding SAR 19.938 billion, reflecting a growth rate of 9.6% compared to SAR 207.553 billion at the end of March 2023.

On a monthly basis, currency in circulation outside banks recorded a growth rate of 4.4%, with an increase surpassing around SAR 9.514 billion compared to SAR 217.976 billion at the end of February 2024.

Meanwhile, quasi-money deposits accounted for about 12.2% of the total money supply, with a value of SAR 345.892 billion.

These deposits include resident deposits in foreign currencies, deposits for documentary credits, existing transfers, and repurchase agreements (repos) executed by banks with the private sector.