KUWAIT CITY, Jan 21: Dinar-denominated savings deposits for the private sector at local banks witnessed a significant decline during the first 11 months of 2023, experiencing a 14 percent contraction amounting to about 946 million dinars. This decline led these deposits to reach their lowest recorded level in two years, plummeting from 6.798 billion dinars at the end of December to 5.817 billion dinars by the end of November. According to data from the Central Bank, there was an annual decrease of 14.4 percent, equating to 984.1 million dinars, compared to the 6.801 billion dinars recorded in November 2022. Simultaneously, private sector “demand” deposits in dinars also registered a decline of 9.3 percent over the 11 months, representing a decrease of 932.7 million dinars.

These deposits contracted from 9.948 billion dinars in December 2022 to 9.015 billion dinars in November 2023. On an annual basis, this decline was 10 percent, with a value of 1.01 billion dinars, compared to the 10.03 billion dinars reported at the end of November 2022. Additionally, there was a monthly decline of 3.8 percent, amounting to 362.1 million dinars, compared to the 9.377 billion dinars reported in October. Conversely, private “time” deposits in dinars experienced a notable increase of 12.6 percent, reaching a total of 2.321 billion dinars during the 11 months.

These deposits rose from 18.427 billion dinars in December 2022 to 20.749 billion dinars in November 2023. Monthly, there was a 0.4 percent increase, equivalent to 84.3 million dinars, compared to the 20.664 billion dinars recorded at the end of October. Annually, this represented a growth of 15 percent, with a value of 2.705 billion dinars, in contrast to the 18.044 billion dinars reported at the end of November 2022. When considering foreign currencies, the total private sector deposits in dinars, which include demand, savings, and term deposits, showed a positive trajectory, increasing by 1.25 percent to reach 35.58 billion dinars by the end of November 2023. This represented a growth from the 35.139 billion dinars recorded in December 2022.

Every month, there was an 0.86 percent increase, totaling 310.7 million dinars, compared to the 35.892 billion dinars reported in October. On an annual basis, this growth was 2 percent, with a value of 704 million dinars, relative to the 34.877 billion dinars reported at the end of November 2022. In the realm of foreign currency deposits, local banks experienced a 1.4 percent increase over the 11 months, amounting to 24.8 million dinars. This led foreign currency deposits to rise from 1.774 billion dinars in December 2022 to 1.799 billion dinars in November 2023. Despite a monthly decline of 1.9 percent, equivalent to about 35.4 million dinars, from the 1.834 billion dinars reported in October, foreign currency deposits saw a 5.1 percent annual growth, equivalent to 88.4 million dinars, compared to the 1.711 billion dinars recorded in November 2022.”

By Ahmad Fathi
Al-Seyassah/Arab Times Staff