KUWAIT, Jan 23 (KUNA) -- Money supply (M2) in Kuwait slightly rose by 0.2 percent last month to reach KD 27.824 billion compared with the month before, Central Bank of Kuwait (CBK) said Tuesday.

Private sector's deposits at local banks jumped by one percent to KD 26.799 billion during the last month of last year, while deposits of foreign currencies plunged by 9.7 percent to KD 2.140 billion, the CBK said in its bulletin about December 2011.

Overall Kuwaiti banks' claims to CBK funds (CBK bonds) rose by 3.9 percent in December to reach KD 1.553 billion, while the tally of budgets of Kuwaiti banks came to KD 44.077 billion, an increase of 1.4 percent.

Net foreign assets of local banks swelled by 6.4 percent to KD 4.982 billion, while time deposits with the CBK rose by 0.6 percent to KD 1.908 billion, said CBK.

Non-residents' deposits in Kuwaiti dinar came down by one percent to KD 3.

034 billion, compared with deposits in foreign currency which jumped 0.9 percent to KD 2.397 billion.

Credit facilities for expatriates stood at KD 25.611 billion, a slighty rise of 0.1 percent. Average interest rate on one-year treasury bonds maintained its 1.25 percent level.

The bulletin also showed that the US greenback gained grounds vis-a-vis the Kuwaiti Dinar and the average exchange rage was 277.41 fils.

M2 is a comprehensive measure used as a key factor to forecast inflation in any economy.