Kuwaiti money supply growth fell to 18.86 per cent in July from 21.61 per cent in June, official data showed on Sunday.

M3, the broadest measure of money circulating in the economy, rose to KD24.65 billion ($85.89 billion) on July 31, from KD20.74 billion a year earlier, the central bank said in a monthly bulletin.

Quasi money -- which includes savings and time deposits in dinars, as well as foreign currency deposits -- rose 24.1 per cent to KD19.99 billion in July, the data showed.

Banks' total claims on the private sector, which also include their local investments, rose almost 9 per cent in the year to July to KD26.39 billion, compared with 26.23 billion dinars in June, the data showed.

Total credit facilities concluded with residents rose 30.3 per cent in the year to July to KD984.3 million -- down from KD1.11 billion a month earlier.

Banks across the Gulf Arab region have become more cautious about extending new loans during an economic downturn that is likely to see several countries, including Kuwait, witness an economic contraction this year. – Reuters