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FINANCIAL NEWS
Saudi money supply growth accelerates to 3.4%
28 Jul 2010
(MENAFN) A report issued by the Saudi Arabian Monetary Agency (SAMA) showed that the Kingdom?s M3 money supply growth accelerated to 3.4 percent in June, the first time its pace has increased since September, Reuters reported.
M3 supply growth, which serves as an indicator of future inflation, quickened from 2.6 percent the previous month. It reached a record high of 26.2 percent in February 2008.
M1 money supply growth, a narrower measure that excludes longer term deposits and money market funds, accelerated to 21.2 percent from 17.8 percent in May, the SAMA said.
M2 money supply growth, which includes time and savings deposits, rose to 6.9 percent from 5.8 percent.
The Kingdom is spending $400 billion over five years, starting in 2009, to strengthen the economy and help finance infrastructure projects.
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