KUWAIT: The Central Bank of Kuwait (CBK) announced on Monday that the broad money supply (M2) recorded a slight monthly decline of 0.3 percent in May, reaching KD 41.7 billion (approximately $137.6 billion). In statistical tables released to Kuwait News Agency (KUNA), the CBK’s Economic Research Department indicated that private sector deposits in local banks in Kuwaiti dinars edged down by 0.1 percent to KD 38.3 billion ($126 billion), while foreign currency deposits by the private sector saw a sharper decline of 5.4 percent to KD 1.7 billion ($5.6 billion). The report further noted that local banks’ claims on the Central Bank, represented by CBK bonds, decreased by 7.5 percent to KD 1.2 billion ($3.6 billion).
Total assets of local banks also dipped marginally by 0.1 percent to KD 95.9 billion ($316 billion), while net foreign assets at local banks dropped by 3.4 percent to KD 14.8 billion ($48.8 billion). Meanwhile, time deposits held at the Central Bank remained stable during the month at KD 750 million ($2.5 billion). In contrast, cash credit facilities, which include loans extended by local banks, rose by 1.3 percent to KD 59 billion ($194.7 billion), reflecting continued credit growth.
The data also showed that financing of Kuwaiti imports increased by 2.4 percent to KD 734 million ($2.4 billion) in May. The average exchange rate of the US dollar against the Kuwaiti dinar saw a slight decline of 0.1 percent, settling at 306.8 fils. The CBK clarified that in its narrow definition, the money supply comprises cash in circulation and demand deposits used in everyday transactions. In its broader sense, it includes current money in addition to savings and time deposit accounts. — KUNA
