The liquidity of the Saudi economy has doubled nine times in 29 years, reaching its highest levels ever at the end of December 30, 2021, compared to about 228 billion riyals at the end of 1993.
According to data from the Saudi Central Bank, "Sama", the liquidity of the local economy has increased by 7.3% (158 billion riyals) since the end of 2020, when it was 2.149 trillion riyals. The money offering also increased by 16.2 percent (322 billion riyals) from its levels before the outbreak of the Corona pandemic, which amounted to 1.985 trillion riyals at the end of 2019.
Increasing the money supply and lowering interest rates, an "expansionary monetary policy", contributes to enhancing aggregate demand, which supports GDP and employment, which is a useful policy to reduce unemployment and the economic downturn expected to extend to most countries in the world with the Corona pandemic. In June 2020, the Saudi Central Bank pumped approximately 50 billion riyals to support liquidity in the banking sector to enable it to continue financing the private sector. Announcing that this liquidity will enhance the role of banks in modifying or restructuring their financing without any additional fees. In addition to supporting plans to maintain employment levels in the private sector, as well as to exempting a number of fees for electronic banking services.
Source (Al-Arabiya.net Website, Edited)
