In a noteworthy financial development, Kuwaiti banks have reported a substantial surge in deposits with foreign banks during the initial ten months of 2023. The trend indicates a 3.8 percent increase, amounting to 253 million dinars. This surge has been consistent, with foreign currency deposits also witnessing an annual rise of 7.1 percent.
Details of the Surge:
- Overall Increase in Foreign Deposits:
- The total foreign deposits in local banks grew from 6.614 billion dinars in December to 6.867 billion dinars in October, marking a 3.8 percent increase.
- A remarkable monthly leap of 20.7 percent was observed, reaching approximately 1.178 billion dinars, compared to 5.688 billion dinars at the end of September.
- Annual Growth in Foreign Deposits:
- On an annual basis, there was a significant 16.7 percent increase, equivalent to 985.3 million dinars, compared to 5.881 billion dinars in October 2022.
- Foreign Banks’ Deposits in Local Banks:
- Foreign banks reciprocated with a 4.6 percent uptick in deposits with local banks over the same period, totaling 3.7 million dinars.
- This increase propelled the deposits from 5.041 billion dinars in December 2022 to 5.272 billion dinars in October.
- Foreign Currency Deposits in Local Banks:
- The private sector’s deposits in foreign currencies within local banks witnessed a 3.4 percent increase, totaling 60.2 million dinars.
- Monthly, there was a 10.1 percent increase, amounting to 168.5 million dinars, compared to 1.666 billion dinars in September.
- Annual Rise in Foreign Currency Deposits:
- Annually, there was a notable 7.1 percent increase, equivalent to 122.7 million dinars, from 1.712 billion dinars in October 2022.
- Local Interbank Market Deposits:
- Deposits exchanged in the local interbank market (interbank) increased by 0.34 percent over 10 months, reaching 6.4 million dinars.
- On an annual basis, there was a 6.4 percent rise, totaling 112.6 million dinars, compared to 1.76 billion dinars at the end of October 2022.
The surge in foreign deposits and foreign currency deposits in Kuwaiti banks reflects confidence in the financial sector. The commitment of the Central Bank of Kuwait to facilitate cash flows and maintain the appeal of the Kuwaiti dinar as a lucrative and reliable savings option underscores the stability of the country’s financial landscape. The consistent annual growth in deposits signifies a positive outlook for Kuwait’s banking industry.
