Saudi Gazette report

RIYADH — Domestic liquidity or available cash in the Saudi economy recorded a remarkable annual growth of SR239.97 billion (8.4 percent), reaching more than SR3.1 trillion by the end of July 2025, according to the monthly statistical bulletin issued by the Saudi Central Bank (SAMA).

The SAMA report showed that the liquidity recorded an increase of SR239,973 million reaching more than SR3,109,761 million, compared to approximately SR2,869,788 million during the same period in 2024.This growth in liquidity reflects the broad concept of money supply (M3), which increased on a quarterly basis by SR64.14 billion or 2.1% to reach SR3.12 trillion by the end of the second quarter of this year, compared to SR3.05 trillion by the end of the first quarter of the same year.

Analyzing the components of money supply (M3), "demand deposits" came in first place, with a contribution of 46.5%, and a value of SR1.44 trillion, followed by "time and savings deposits," which amounted to SR1.1 trillion, with a contribution of 36.1%. Other quasi-cash deposits also recorded a level of SR296.71 billion, representing 9.5%, while "cash in circulation outside banks" ranked fourth with a value of SR242.3 billion, representing a contribution of approximately 7.8%.

It is noteworthy that quasi-cash deposits include resident deposits in foreign currencies, deposits against documentary credits, outstanding transfers, and repurchase (repo) operations executed with the private sector. Money supply, as defined by (M1), includes cash in circulation outside banks in addition to demand deposits, while (M2) includes both (M1) and time and savings deposits whereas M3 reflects the broader definition by adding other quasi-cash deposits.