Kuwait money supply at $27bn: CBK

KUWAIT: Money supply in its broad concept (M2) dropped 0.1 percent last January, in contrast to December, where it posted KD 38.5 billion ($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 ($112 billion).

Those in foreign currency rose, also in the same month, by 2.8 percent to KD 2.6 billion ($8.6 billion), where aggregate deposits by this sector amounted to KD 36.8 billion ($121 billion). Aggregate claims by domestic banks on the CBK, in the form of the CBK bonds, settled at KD 3 billion ($9.9 billion) in January. Total assets at the local banks dropped one percent, KD 65.9 billion ($217 billion). Net foreign assets at the domestic banks declined by 2.4 percent, also in January, reaching KD 7.5 billion ($24.7 billion). Froward assets at the CBK dropped 2.6 percent to KD 1.5 billion ($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 ($121.3 billion), while the interest rate on one year treasury bonds settled at 3.25 percent.

Financing of imports fell, in January by 0.5 percent, reaching KD 302 million ($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 ($35.6 billion), while net foreign assets increased at the CBK by 1.2 percent, recording KD 10.5 billion ($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. – KUNA