By: Waleed Abd El-Salam
Riyadh - Mubasher: Returns on deposits in Saudi banks rose for the 8th consecutive months, as it reached 2.3716% in October for three-month deposits, compared to 0.8787% for its US dollar equivalent, with a difference of 1.4930%.
According to the data of Saudi Arabian Monetary Authority (SAMA) the return on the one month deposits also increased for the 6th month in a row to 2.0896% compared to 0.5308% for its US dollar equivalent, with a difference of 1.5588%.
Returns on the Saudi Riyal one-year deposits reached 2.6434%, more by 1.0656% than the dollar deposits for the same period which returns registered 1.5778%.
The difference in interest rates declined for the fourth consecutive month, as it recorded 1.493% in October compared to 1.6153% in June.
The growth in interest prices allow the banks to expand its financing for short-term loans, it also helps in controlling the interest rates on loans.
Higher returns encourage saving which is in itself a tool in combating inflation, while higher loan interests raises the cost of investment.
Translated by: Moslem Ali
