Levels of liquidity “available funds” in the Saudi economy recorded an annual growth of an estimated 275,155 billion riyals, or 10.3%, reaching 2,945,656 million riyals by the end of November 2024, compared to 2,670,501 million riyals for the same period in 2023. These levels reflect the money supply in its broad and comprehensive sense (N3), as indicated by data from the Saudi Central Bank’s monthly statistical bulletin for November.
liquidity recorded monthly growth exceeding 9,567 billion riyals, or 0.3%, compared to 2,936,089 million riyals at the end of October 2024.
Liquidity also recorded growth from the beginning of 2024 through the end of November of the same year, exceeding 224,699 billion riyals, an increase of 8.3%, compared to 2,720,957 million riyals at the end of January.
These strong liquidity levels serve as a driver for the economic and commercial system and contribute to achieving positive rates in the course of economic development.
A review of the four components of the broad money supply (M3) in its broad and comprehensive sense shows that “demand deposits,” which account for the largest share of the total at 48.8%, amounted to 1,436,392 million riyals as of the end of November 2024, while “time and savings deposits” stood at 989,986 billion riyals, representing the second-largest contributor to the total money supply at 33.6%.
“Other quasi-monetary deposits” reached 292,630 billion riyals, accounting for 9.9% of the total money supply, making them the third-largest contributor. Fourth on the list was “Cash in circulation outside banks” at 226,647 billion riyals, accounting for approximately 7.7% of the total money supply.
It should be noted that quasi-monetary deposits consist of residents" foreign currency deposits, deposits against documentary credits, outstanding transfers, and repurchase agreements (repos) executed by banks with the private sector.
Domestic liquidity also includes (N1), which comprises cash in circulation outside banks, in addition to demand deposits only, and (M2), which includes (M1) plus time and savings deposits; and the broad definition (M3), which includes (M2) plus other quasi-monetary deposits.
