Moreover, Saudi banks reported their liquid positions as evident by the level of deposits with Saudi Arabian Monetary Agency (SAMA) which surged to SR159.3 billion, with 60.9 percent in the form of excess reserves, the report said.
Furthermore, bank claims on the public sector dropped for the second consecutive quarter to SR177.8 billion, declining by 14.1 percent Q/Q and 2.3 percent Y/Y, the first annual drop since Q2, 2010.
On the other hand, lending to the private sector gained 11 percent reflecting a sustainable level in the short- to medium-term.
Regarding international position, SAMA net foreign assets crossed the SR2 trillion mark, comprised mainly of investment in foreign securities at almost 70 percent and in banks abroad at 20 percent, reflecting the government’s conservative strategy of seeking lower risk and higher liquidity given the turbulence in credit and money markets.
Saudi inflation is expected to be range bound around 4.8 percent this year on a stronger dollar which will reduce imported inflation and easing commodity prices while rental pressures remain relatively moderate, the report said.
