In a recent update, the Saudi Arabian Monetary Authority (SAMA) reported a notable decline in the M3 money supply, which now stands at 6.50% as of May 28, 2024. This marks a significant drop from the 8.30% observed in March 2024.
The M3 money supply, which includes large time deposits, institutional money market funds, short-term repurchase agreements, and other larger liquid assets, is a key indicator of economic stability and growth. The current figure of 6.50% reflects a year-over-year comparison, highlighting a reduced growth rate relative to the same period last year.
This drop could signal changes in economic activities or shifts in monetary policies implemented by SAMA. The decline from 8.30% in March to 6.50% in May suggests a slowing down of money supply expansion, which will likely be an area of focus for economists and financial analysts monitoring the country's economic health. Investors and market participants will be keeping a close eye on future reports to gauge the potential impacts on Saudi Arabia's economic landscape.
