The latest Saudi Arabian Monetary Agency (SAMA) data show a huge increase in liquidity in March even though banks showed great restraint in their lending. Broad money supply (M3) soared by SAR 23 bn in March, the second largest monthly increase on record, following a SAR10.4 bn increase in February. Total bank deposits increased also by SAR 23 bn in March and by SAR 12 bn in February.
The rise in bank deposits suggests that stock market investors may have opted to liquidate their positions and place the proceeds in bank accounts.
