Kuwait: Money supply declines
In a latest report on monetary developments, it is indicated that money supply (M2) in Kuwait declined by 2% in October, the largest one-month drop on record. As a result, the year-on-year growth in money supply continued its slowdown to 13.6% after having accelerated earlier this year to reach a high of 17.9% in July.
The October drop came despite continued growth in credit, albeit at a much more moderate pace than in previous months. While both local and foreign currency deposits at local banks shrank – the latter being of much greater magnitude – banks saw other liabilities rise including government deposits and deposits from foreign banks.