Saudi money supply grows but credit to private sector drops

The annual growth of Saudi Arabia's money supply rose to its highest level in 2009 after the central bank slashed an interest rate that pays commercial banks for deposits, but credit to private sector kept declining.

M3, the broadest measure of money circulating the economy, stood at SR977.6 billion (Dh957.55bn) on April 30, 18.3 per cent above its level a year earlier, monthly data released by the Saudi Arabian Monetary Agency (Sama) showed.

The annual growth of M3 was 15.8 per cent in March, according to Sama's data. At 18.3 per cent, M3 annual growth was the highest since November, 2008.