RIYADH — Liquidity levels in the Saudi economy recorded robust growth, reaching their highest levels in history by the end of February 2025, with an annual increase of SR277.49 billion, representing a growth rate of 10.1 percent. Total liquidity crossed SR3 trillion (SR3,033,684 million), compared to SR2,756,193 million during the same period in 2024. This reflects the strong growth performance of the broad money supply (M3), according to data in the monthly statistical bulletin released by the Saudi Central Bank (SAMA). Liquidity levels witnessed a monthly growth of SR67,543 million, representing 2.3 percent, compared to SR2,966,140 million at the end of January this year. These levels of liquidity are a driving force behind and supportive of the economic and commercial system, contributing to positive economic development. Reviewing the four components of money supply (M3) in its broad and comprehensive sense, demand deposits accounted for the largest contribution to the total, accounting for 48.5 percent, with a value of SR1,470,383 million by the end of February. Time and savings deposits accounted for SR1,031,712 million, representing the second largest share to total money supply, accounting for 34 percent. Quasi-cash deposits accounted for SR293,683 million, representing a 9.7 percent contribution to total money supply, making them the third largest contributor. Currency in circulation outside banks came in the fourth place, accounting for SR237,905 million, representing approximately 7.8 percent of total money supply. It is noteworthy that quasi-cash deposits consist of residents' deposits in foreign currencies, deposits secured by letters of credit, ongoing transfers, and repurchase (repo) operations carried out by banks with the private sector. Domestic liquidity comprises (M1), which includes currency in circulation outside banks, in addition to demand deposits exclusively. M2 consisting of M1 plus time and savings deposits, and broad money M3 encompassing M2 along with other quasi-cash deposits.
