Bahrain’s money supply up 7.91% in March

Assets amounted to $225.2 bn in Feb
Bahrain’s money supply up 7.91% in March
Bahrain saw increase in money supply

The Central Bank of Bahrain (CBB) has revealed a 7.91% year-on-year increase in money supply during March. Private sector credit also grew by 5.56% during the same period.

According to the official website of the Bank, assets as of February 2023 amounted to $225.2 billion.

In October 2022, CBB said an increase in money supply till end-August is consistent with the return of activity in all national economic sectors.

Money supply in its broad sense, (M3), totaled BD15.2 billion ($40.2 billion) at the end of August 2022, an increase of 3.7 percent compared to end-August 2021, the regulator said in its October statement.

The report noted that for retail banks, total private deposits increased to around BD13.5bn as of end-August 2022, an increase of 6.1 percent compared to end-August 2021.

Read more: Bahrain’s economy grows by 4.9%, highest rate since 2013

During its latest monetary policy meeting, CBB raised its key interest rate by 25 basis points, in light of developments in international financial markets and as part of measures taken to ensure the smooth performance of money markets.

The CBB said it continues to monitor global and local market developments closely in order to take any further necessary actions to maintain monetary and financial stability in the Kingdom.

In April, Bahrain’s Treasury Bills issued for BD 70 million ($185.7 million) were oversubscribed by 111%.

The bills, which carried a maturity of 91 days, were issued by the CBB, on behalf of the Government of the Kingdom of Bahrain.

Moreover, in early May, CBB announced that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 403%.

Subscriptions worth BD 104.778 million were received for the BD 26 million issuances, which carry a maturity of 182 days.

The expected return on the issue, which began on 4th May 2023 and will mature on 2nd November 2023, is 6.05% compared to 6% of the previous issue on 6th April 2023.

For additional news on the economy of Bahrain, click here.

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