https://arab.news/bebbg
RIYADH: Saudi Arabia’s M3 money supply has surged 4.71 percent since December 2022, according to data released by the Saudi Central Bank, also known as SAMA.
The M3 money supply — the broadest measure of liquidity in the monetary system — reached SR2.61 billion ($697 billion) in the week ending June 1, up from SR2.5 billion on Dec. 31.
However, the money supply for the week ending June 1 dropped 0.29 percent compared to $2.62 billion in the week ending June 25.
The SAMA data also showed that the money supply has been stable at SR2.6 billion in the past six weeks.
Central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.
Meanwhile, the M2 money supply recorded a 4.53 rise compared to Dec. 31 and a 0.57 percent weekly increase.
The M2 poses a measurement of the nation’s money supply that estimates all the cash individuals have in hand or short-term bank deposits. It is usually used to indicate possible increases or decreases in inflation levels.
As for the M1 money supply during the week ending June 1, it jumped 1.45 percent from the end of December 2022 and 1.52 percent against the preceding week.
The M1 money supply comprises currency, demand and other liquid deposits.
It contains currency and assets that can be quickly converted to cash.