Wednesday 17 July 2013

{Kantakji Group}. Add '11980' NCB Saudi Economic Review - July 2013

FYI

Nawaf Y. Husein

Faculty Member
 Msc, CRP , CLBB
 Saudi Training Society Member


 Institute of Banking
 Saudi Arabian Monetary Agency ( SAMA)
  P.O.Box : 10820   Riyadh 11443 Saudi Arabia
 Tel : + 966 1 463 3000   Ext. 3825
  Fax: + 966 1 466 2368
  Mobile : + 966 55 48 44 828
  http://www.linkedin.com/pub/nawaf-abu-hejleh/28/342/64a
  SKYPE : abuhejleh2 


 

 

Dear Readers,

 

Please find attached our monthly NCB Saudi Economic Review.

 

Executive Summary

 

·         OPEC production edged down in June for the first time in five months, as supply disruptions in Libya, and Nigeria more than offset the increase of production by Saudi Arabia.

 

·         Investors rushed to park their assets in the dollar, awaiting uncertainty to clear off,  allowing the USD to score large gains against its peers after it was weakened earlier by investors leaving to avoid large volatility and event risk.

 

·         China and India are the largest consumers of gold. Therefore, the curbs over India's gold imports and China's cooling economy play major culprits, beside the Fed's announcement effect, in falling gold prices.

 

·         Coupled with the rise of the local stock market and global economic turmoil, which kept interest rates at all-time lows, we expect time and savings deposits' growth to remain sluggish throughout this year.

 

·         Weaker investor appetite can be attributed to the summer vacation as a large part of traders reap their investment gains and turn to consumer spending locally and internationally. In addition, the start of the Holy month of Ramadan is likely to have limited activity in the market.

 

·         Growth in the depositary base continues to provide opportunities to expand the financing capabilities of the banking system as total deposits reached SAR1.3 trillion during May.

 

·         External trade of non-oil goods for the month of May resulted in an increase in returns from exports by 5.9% Y/Y, amounting a total of SAR16 billion. 

 

 

Best regards,

 

 




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