Saudi money supply slows in June

23 July 2009

Money supply in Saudi Arabia, an indicator of future inflationary pressure, slowed to 16.4 per cent in June, from 16.9 per cent in the previous month, according to the Saudi Arabian Monetary Agency (Sama).

M3 money supply, the broadest measure of the money in an economy, rose to SR1 trillion ($266.7bn) in June.

In May, M3 growth fell for the first time since January, falling to 16.9 per cent from 18.3 per cent in April, indicating that the economy is slowing and that inflation will continue to fall.

Figures released by Sama also show that its foreign assets fell for the second month in a row, and was SR1,459bn at the end of June, after falling to SR1.482 in May.

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