ID :
164809
Mon, 02/28/2011 - 20:46
Auther :
Shortlink :
http://m.oananews.org//node/164809
The shortlink copeid
Liquidity growth ends 2010 at 9.2% in Yemen SANA'A
Feb. 28 (Saba)- New figures from the Central Bank of Yemen show broad money supply (M2) growth edged down slightly in December
to end 2010 at 9.2% year-on-year (y/y).
Narrow money supply (M1) on the other hand edged up slightly to end the year up 3.7% y/y. A nearly 1,000 basis point increase in administratively set interest rates throughout the year helped take some heat off of the recent resurgence of dollarization in the economy.
Throughout 2010 foreign currency deposit growth edged down from a peak of 51.6% y/y in April to a still robust 23.5% y/y in December, to end the year at 778 billion rials.
In comparison, local currency denominated time deposits edged up from a low of -8.1% y/y in April to 11% at the end of the year, standing at 472.3 billion Yemeni rials (US$2.2 billion), while domestic currency denominated savings deposits ended the year up 4.6% y/y at YER128.8 billion.
At the end of 2010 broad money supply stood at YER2,267.1 billion while narrow money supply stood at YER786.6. The government's decision to raise domestic interest rates, taking advantage of lower domestic inflation, succeeded in bringing down surging foreign currency deposit growth.
Growing stability in the rial/USD exchange rate also contributed to the higher domestic currency denominated deposit growth throughout the year as confidence in the rial grew.
to end 2010 at 9.2% year-on-year (y/y).
Narrow money supply (M1) on the other hand edged up slightly to end the year up 3.7% y/y. A nearly 1,000 basis point increase in administratively set interest rates throughout the year helped take some heat off of the recent resurgence of dollarization in the economy.
Throughout 2010 foreign currency deposit growth edged down from a peak of 51.6% y/y in April to a still robust 23.5% y/y in December, to end the year at 778 billion rials.
In comparison, local currency denominated time deposits edged up from a low of -8.1% y/y in April to 11% at the end of the year, standing at 472.3 billion Yemeni rials (US$2.2 billion), while domestic currency denominated savings deposits ended the year up 4.6% y/y at YER128.8 billion.
At the end of 2010 broad money supply stood at YER2,267.1 billion while narrow money supply stood at YER786.6. The government's decision to raise domestic interest rates, taking advantage of lower domestic inflation, succeeded in bringing down surging foreign currency deposit growth.
Growing stability in the rial/USD exchange rate also contributed to the higher domestic currency denominated deposit growth throughout the year as confidence in the rial grew.
