Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi - SAMA's foreign assets expand by 13% to SR2.66 trillion  Join our daily free Newsletter

MENAFN - Arab News - 08/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) Saudi Arabia's monetary system continues to be awash with liquidity over the past few years as elevated oil prices and increased production resulted in higher revenues.



Following 32 months of consecutive annual gains, the monetary base (M0) recorded its annual contraction of 9.7 percent, settling at SR302.5 billion.



While the base effect greatly contributes to the decline, M0 also declined on a monthly basis by 0.9 percent, the National Commercial Bank (NCB) said in its latest report



Saudi bank reserves recorded a large drop during October, falling by 19.6 percent. Banks' deposits with Saudi Arabian Monetary Agency (SAMA), which constitute over 80 percent of bank reserves, dropped by SR35.8 billion over the past twelve months. Moreover, cash in vault settled 10.6 percent lower on an annual basis to SR24.2 billion, the NCB report said

By the end of last year, banks' excess reserves ratio which is represented by deposits with SAMA other than statutory deposits reached 64.6 percent given the liquid state of the market. The ratio plunged to 40.5 percent during October as banks opt to utilize their assets by offering credit coupled with the government's attempt to contain liquidity by issuing T-bills. Additionally, currency outside banks reached SR144.2 billion, an increase of 4.5 percent annually, as the crackdown on illegal workers spiked cash handling



As for the money supply (M3), the NCB report said, growth decelerated accordingly to 10.4 percent Y/Y from 13.4 percent during the previous month. Demand deposits, the largest component of M3, was the main driver as it expanded by 16.4 percent during October. The non-yielding asset is favored by binesses and individuals as time and savings deposits were almost stagnant with a minor increase of 0.4 percent annually.




As the US contemplates tapering in the next couple of months, the bank said time and savings deposits to remain relatively stable as investors assess the effects on interest rates and the bonds market. The smallest component of M3, other quasi-monetary deposits, accelerated by 9.2 percent Y/Y.



The NCB report said, SAMA was able to expand their net foreign assets by 13.1 percent annually to reach a record SR2.66 trillion. The financial system's position is reasonably strong to withstand any external shocks whether regional or global as SAMA's prudent guidelines directed banks to safer grounds

The rebased headline inflation rate recorded its third annual deceleration as the index posted a 3.0 percent annual rise. Domestic consumer prices have been somewhat contained and within an acceptable range given the economic expansion experienced in the local economy. The Reuters/Jefferies CRB index, a global commodities gauge, dropped 2.7 percent during October. Accordingly, the foodstuff sub-index decelerated to 5.2 percent, the lowest level in eleven months. The category of housing and utilities also slowed to 3.5 percent Y/Y during October. The education sub-index increased to 3.7 percent from 1.7 percent during the previous month. Private schools have increased their tuition fees to cover rising costs. This academic year, 49 percent of private schools filed to raise their fees with only 21 percent of applicants approved. The range of price hikes was between 5 percent-20 percent, according to the General Manager of Private and Foreign Education from the Ministry of Education

 


Arab News




  MENA News Headlines
 Jun 26 2016 - Saudi Arabia chooses financial planners for USD10bn bondMENAFN
(MENAFN) Saudi Arabia has picked Citigroup, HSBC and JP Morgan to arrange its new USD10 billion bond, local financial sources reported.Banks had pitched for roles on the transaction earlier this ...

 Jun 26 2016 - Dubai's new industrial vision to generate USD44bMENAFN
(MENAFN) Dubai has announced its new Industrial Strategy, which will oversee 75 initiatives to add USD44 billion to the emirate's economy.The plan has been approved by Vice President and Prime ...

 Jun 26 2016 - Turkey Anel grasps USD66m in DohaMENAFN
(MENAFN) Turkish-based Anel Mepa has won an USD66.5 million contract for the Red Line of Doha Metro scheme, a report said.In detail, the agreement includes building automation and management and ...

 Jun 26 2016 - Oman engineering college kick off solar projectMENAFN
(MENAFN) The Sultan Qaboos University (SQU) College of Engineering said it's currently working on a new solar project.In detail, the USD559 thousand project is expected to generate electricity with ...

 Jun 26 2016 - Damac awarded USD817m deals in H1MENAFN
(MENAFN) Damac Properties, a UAE firm, said it had awarded 25 construction and consultancy contracts worth USD817 million during the first half of this year.In detail, the leading luxury real estate ...

 Jun 26 2016 - Saudi, UAE say no big financial effect from BrexitMENAFN
(MENAFN) Saudi Arabia and UAE said that they did not expect remarkable effect to their financial institutions after Britain's vote to leave the European Union."Kingdom had already made some ...

 Jun 26 2016 - UAE Embassy in distributes Ramadan aid to Muslims in VietnamEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) HANOI, 26th June, 2016 (WAM) -- The UAE Embassy in Vietnam has overseen the distribution of food aid to 150 underprivileged Muslim families in the Nghia ...

 Jun 26 2016 - Qatar Petroleum announces integration of TasweeqEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DOHA, 26th June, 2016 (WAM) -- Qatar Petroleum, QP, the state owned petroleum company in Qatar, has announced the integration of Qatar International ...

 Jun 26 2016 - UAE- Ajman Chamber organises 4th diplomatic forum and discusses economic cooperationEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) AJMAN, 26th June, 2016 (WAM) -- The Ajman Chamber of Commerce and Industry, ACCI, organised the 4th edition of its annual Ramadan Diplomatic Forum aimed at ...

 Jun 26 2016 - UAE Space Agency and Lockheed Martin partner to train next generation of UAE national space talentEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 26th June, 2016 (WAM) -- The UAE Space Agency has signed a Memorandum of Understanding, MoU, with Global technology leader, Lockheed Martin, to ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help