Kuwait central bank: Money supply at US$128 billion

Money supply (M2) rose two percent in June on monthly basis recording KD 38.9 billion (US$ 128 billion), the Central Bank of Kuwait (CBK) said on Sunday. The CBK economic research department reported that deposits in the Kuwaiti dinar by the private sector in the local banks climbed, in June, to KD 34.5 billion (US$ 113.8 billion).

Those of foreign currencies climbed 9.1 percent reaching KD 2.5 billion (US$ 8.2 billion), where this sector overall deposits amounted to KD 37 billion (US$ 122 billion). Local banks’ claims on the CBK in the Kuwaiti dinar, represented by the CBK bonds, settled at KD 2.9 billion (US$ 9.5 billion).

Total local banks assets increased 1.1 percent, reaching US$ 68 billion (US$ 224 billion). Net foreign (currencies) assets in the domestic banks climbed 5.5 percent to KD 7.7 billion (US$ 25.4 billion), while time deposits with the CBK dropped by nine percent, reaching KD 1.4 billion (US$ 4.6 billion). Residents’ private sector deposits rose in June by 0.8 percent, as compared to the May level, posting KD 37.8 billion (US$ 124.7 billion). Meanwhile, average interest rates on treasury bonds of one-year maturity settled at 3.25 percent. Financing of Kuwaiti imports dropped in June by one percent reaching KD 313 million (US$ one billion).

Meantime, average US$ rate against the KD dropped in June by 0.1 percent, posting 303.5 per US$. Value of assets at the central bank dropped 3.6 percent reaching KD 10.9 billion (US$ 35.9 billion). Assets in foreign currencies at the CBK dropped four percent posting KD 10.6 billion (US$ 34.9 billion).