During the first 9 months of 2023, local banks’ deposits with foreign banks experienced a 14% decrease, totaling 925.7 million dinars, down from 6.614 billion dinars in December to 5.688 billion dinars in September. On an annual basis, this marked a 4.8% decline, equivalent to 290.6 million dinars, compared to 5.978 billion dinars in September 2022. However, on a monthly basis, deposits increased by 4.4%, about 241.8 million dinars, compared to the end of August when it stood at 5.446 billion dinars.

Conversely, foreign banks’ deposits with local banks saw a 0.07% increase during the first 9 months of 2023, amounting to 3.7 million dinars. This rise took the total from 5.041 billion dinars at the end of December 2022 to 5.038 billion dinars in September. On an annual basis, these deposits decreased by 0.35% or 17.7 million dinars, given that they were 5.02 billion dinars in September 2022. Yet, they increased by 2.8% on a monthly basis, approximately 140.8 million dinars, compared to 4.897 billion dinars at the end of last August.

In terms of foreign currencies, private sector deposits in foreign currencies held in local banks decreased by 6%, totaling 108 million dinars. This decline brought the total from 1.774 billion dinars in December 2022 to 1.666 billion dinars in September. However, on a monthly basis, deposits increased by 0.7%, around 11.9 million dinars, as they were at 1.654 billion dinars in August. On an annual basis, there was a 0.5% increase, totaling 9 million dinars, considering the amount was 1.657 billion dinars in September 2022.

The Central Bank of Kuwait aims to enhance cash flow between the banking sector and the national economy while emphasizing the attractiveness of the Kuwaiti dinar as a stable vessel for savings. The Central Bank’s actions align with its conservative policy to keep the Kuwaiti dinar appealing and competitive in comparison to the US dollar, especially amid global economic conditions and geopolitical developments that impact inflation rates.

Regarding interbank deposits, these experienced a 7.4% decrease over the 9 months, totaling 137.7 million dinars. This decrease brought the amount from 1.867 billion dinars in December to 1.73 billion dinars in September. On a monthly basis, interbank deposits increased by 26%, approximately 357.7 million dinars, after they stood at 1.372 billion dinars in August. On an annual basis, there was a 15.5% decline, equivalent to 317.5 million dinars, considering the amount was 2.047 billion dinars at the end of September 2022. Central Bank data for the past year shows that interbank deposits experienced continuous growth from the beginning of 2022 until February 2023, followed by continuous declines from March to August, and then a return to growth in September.

 

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