RIYADH: Saudi Arabia’s M3 money supply has surged 5.59 percent to SR2.63 billion ($700 billion) in the week ending June 8, up from SR2.5 billion on Dec. 31, 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 — went up 0.83 percent to $2.61 billion in the week ending June 8 compared to the preceding week.
The SAMA data also revealed that the money supply in Saudi Arabia has been stable at SR2.6 billion in the past seven weeks.
Generally, central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.
Additionally, the M2 money supply recorded a 5.04 percent rise in the week ending June 8 compared to Dec. 31.
The M2 is 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.
Meanwhile, the M1 money supply, comprising currency, demand and other liquid deposits, rose 1.46 percent in the week ending June 8 compared to the end of December 2022.
The M1 money supply contains currency and assets that can be quickly converted to cash.
