Riyadh – Mubasher: Total Saudi bank deposits rose SAR 4 billion in September, due to a net increase in private sector and other deposits, while government deposits fell slightly, according to Jadwa Investment.
“Measures to manage liquidity have contributed to halting the constant rise in the cost of funding. Moving forward, we expect an increase in government deposits to result in a further easing of liquidity conditions,” the report said.
The investment company pinpointed that the SAR 20 billion liquidity injected by Saudi Arabia Monetary Agency (SAMA), on behalf of government entities, in the form of time and savings deposits led to a raise by SAR 17 billion in September
Jadwa Investment expected an improvement in government deposits after the issuance of the international bond, and the potential resumption of payments to contractors to result in a further easing of liquidity conditions.
The improvement in liquidity will prevent more inflation slowdown during the remaining period of 2016, the report added.
