KUWAIT: Figures issued by the Central Bank of Kuwait Tuesday showed that the broad money supply (N2) increased by 0.1 percent last July (monthly) to reach about KD 41.7 billion (about $137.6 billion). The bank's Economic Research Department revealed in statistical tables that private sector deposits with local banks decreased by 0.2 percent last July to reach KD 37.1 billion (about $122.4 billion). It added that the private sector's deposits in foreign currencies rose 7.6 percent to reach KD 2.8 billion (about $9.2 billion). In contrast, the total balances of local banks' demands on the Central Bank in KD, represented by (Central) bonds, stabilized at KD 3 billion (about $9.9 billion). However, the total assets of local banks decreased by 0.4 percent to reach KD 81.5 billion (about $268.9 billion). In comparison, the net foreign assets of regional banks rose by 9.4 percent to KD 6.2 billion (about $20.4 billion). It stated that time deposits with the CBK jumped last July by about 18.8 percent to reach KD 3.8 billion (about $12.5 billion), and the balances of cash credit facilities (loans) increased by 0.3 percent to reach KD 44.8 billion (about $147.8 billion). Average interest rates on treasury bonds with a maturity of one year rose last July to three percent from 2.750 percent last June while financing Kuwaiti imports fell 36 percent last July to reach KD 452 million (about $1.4 billion). Average exchange rate of the US dollar against the dinar last July rose by 0.3 percent to 307.1 fils. In its narrow sense, the money supply means the cash volume for current operations. It includes paper and coins that people trade in daily transactions and money deposited in banks in the form of current accounts or demand deposits. In contrast, the money supply in its broad sense includes, in addition to current money, term deposit accounts and savings accounts.
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