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Kuwait City, August 1: Kuwait’s foreign exchange reserves have fallen to their lowest level since January 2024, reflecting a significant reduction in the country’s reserve assets, Al-Seyassah daily reported. The daily cited sources as saying that Kuwait’s official reserve assets stood at 14.279 billion dinars (46.806 billion U.S. dollars) at the end of June 2024. The annual decline of 4.38% is equivalent to a reduction of 661 million dinars (2.166 billion U.S. dollars).
In June 2023, Kuwait had reserves of 15.089 billion dinars ($49.461 billion). By May 2024, reserves had fallen to 14.591 billion dinars ($47.829 billion). Since the beginning of 2024, reserves have fallen by 1.31% from 14.620 billion dinars ($47.858 billion) at the end of 2023. The decline is attributed to a decrease in the “foreign currency and overseas deposits” component, which stood at 12.808 billion dinars in June 2024. This figure is 4.73% lower than in June 2023 and 1.32% lower than in May 2024.
The reduction in reserves could affect Kuwait’s financial stability and its ability to respond to external shocks, highlighting the need for strategic adjustments to financial policies. Meanwhile, the Central Bank of Kuwait announced that the broad money supply (M2) remained stable at 40.1 billion Kuwaiti dinars (about 131 billion U.S. dollars) as of June 2024. This figure reflects a stable monetary environment and remained at the same level as last month.
According to the Central Bank’s Economic Research Department, private sector deposits in local banks rose slightly by 0.2% in June to 36.6 billion dinars (about 119.6 billion U.S. dollars). This increase indicates a slight increase in liquidity in the domestic economy. In addition, foreign currency deposits held by the private sector increased by 0.1% to a total of 1.85 billion dinars (about 6 billion U.S. dollars). This small increase highlights the continuation of international financial activities and foreign exchange reserves. However, the balance of total claims of local banks on the central bank, represented by central bonds, fell sharply by 7.2% to 2.9 billion dinars (about 9.5 billion U.S. dollars). This decline may mean a reduction in central bank securities or a shift in investment preferences.
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