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|13 March, 2019

Kuwait’s money supply at $127bln in January

Net foreign assets at the domestic banks declined by 2.4% in January

Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017.

Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017.

Getty Images/Emad Aljumah

KUWAIT CITY - Money supply in its broad concept (M2) dropped 0.1 percent last January, in contrast to December, where it posted KD 38.5 billion (USD 127 billion), according to the Central Bank of Kuwait (CBK). Private sector’s deposits in local banks dropped, in January, by 0.3 percent, amounting to KD 34.2 billion (USD 112 billion). Those in foreign currency rose, also in the same month, by 2.8 percent to KD 2.6 billion (USD 8.6 billion), where aggregate deposits by this sector amounted to KD 36.8 billion (USD 121 billion).

Aggregate claims by domestic banks on the CBK, in the form of the CBK bonds, settled at KD three billion (USD 9.9 billion) in January. Total assets at the local banks dropped one percent, KD 65.9 billion (USD 217 billion).

Net foreign assets at the domestic banks declined by 2.4 percent, also in January, reaching KD 7.5 billion (USD 24.7 billion). Forward assets at the CBK dropped 2.6 percent to KD 1.5 billion (USD 4.9 billion). Balance of utilized cash credit facilities to residents rose 0.2 percent in January, as compared to the December level, amounting to KD 36.9 billion (USD 121.3 billion), while the interest rate on one year treasury bonds settled at 3.25 percent.

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Financing of imports fell, in January by 0.5 percent, reaching KD 302 million (USD 996.6 million), while the average USD exchange rate against the KD, in January, fell 0.2 percent recording 303.1 fils per one USD. Aggregate total assets at the CBK rose 0.7 percent reaching KD 10.8 billion (USD 35.6 billion), while net foreign assets increased at the CBK by 1.2 percent, recording KD 10.5 billion (USD 34.4 billion). M2, or “broad money,” refers to current, time and saving accounts, as compared to the “narrow money” index that alludes to coins, banknotes and money deposited at the banks.

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