CBK: Money supply decreases to 0.2 pct last April

The money supply (M3) decreased by 0.2 percent last April on a monthly base to reach KD 39.4 million (about USD 130 million), said Kuwait Central Bank on Thursday.

In a statement to KUNA, CBK’s Economic Research Department said that the private sector’s deposits in local banks in Kuwait dinars decreased by 0.3 percent last April, to reach KD 35.9 billion (about USD 118 billion).

The private sector deposits in foreign currencies remained unchanged at KD 1.7 billion (about USD 3.6 billion), while the total balances of local banks’ demands on the Central Bank in dinars represented by (Central) bonds decreased by 5.8 percent to KD 3.2 billion (about USD 10.5 billion dollars), added the statement.

The department explained that the total assets of local banks decreased by 0.5 percent, to record KD 84.9 billion (about USD 280 billion), while the net foreign assets of local banks increased by 3.8 percent to KD 10.5 billion (about USD 34.6 billion dollars).

Time deposits at CBK stabilized last April at KD 2.6 billion (about USD 8.5 billion), while the balances of cash credit facilities (loans) decreased by 0.3 percent to reach KD 52.2 billion (about USD 172.5 billion), it noted.

The statement indicated that the average interest rates on treasury bonds for a one year maturity remained at 4.5 percent last April, while financing Kuwaiti imports decreased by 5.6 percent to one billion KD (about USD 3.3 billion), and the average exchange rate of the US dollar against the Kuwaiti dinar decreased in April by 0.1. percent to 306.3 fils.

Money supply in its narrow sense means the volume of current operations, including banknotes and coins that people trade in their everyday dealings as well as money deposited in banks in the form of current accounts or demand deposits, while money supply in its broad sense includes time deposit accounts and savings accounts in addition to current money.

Source: Kuwait News Agency