Kuwait’s money supply increased 0.5% in December

KUWAIT: The Central Bank of Kuwait announced Monday an increase in broad money supply (M2) by about 0.5 percent during December. The broad supply monthly growth reached KD 38.4 billion (about $126.7 billion).

Statistical tables shared by the bank’s economic research department with KUNA showed that Kuwaiti dinar private sector deposits in local banks rose by 0.3 percent last December to reach KD 34.9 billion ($115 billion). It added that private sector deposits in foreign currencies increased by 3.7 percent, to reach KD 1.7 billion (about $5.6 billion).

It explained that the total assets of local banks increased by 0.9 percent, to record KD 85 billion (about $280.5 billion), while the net foreign assets of local banks rose 3.3 percent to KD 10.8 billion (about $35.6 billion). It stated that time deposits with the Central Bank have increased last December by about 15.5 percent, to reach KD 1.3 billion (about $4.2 billion), while the balances of cash credit facilities (loans) increased by about 0.2 percent to KD 52.4 billion (about $172.9 billion).

It indicated that the average interest rates on treasury bonds of one year maturity remained last December at 4.5 percent. The financing of Kuwaiti imports increased by 90.6 percent to KD 1.1 billion (about $3.6 billion), while the average exchange rate of the US dollar decreased against the dinar.

The money supply in its narrow sense means the volume of current operations and includes paper and metal currencies that people trade in their daily dealings and money deposited in banks in the form of current accounts or demand deposits. – KUNA.