Real estate related economic and financial news covering the MENA region.
Saudi inflation may spur treasury bill sales
Apr 03, 2012
Saudi-based Jadwa Investment has said the kingdom may accelerate treasury-bill sales this year and offer higher yields to drain funds from banks after inflation climbed to a 15-month high, Bloomberg has reported. Treasury bills issued by the central bank surged 17% in April 2011 from the month earlier and grew another 14% in May. The rise in issuance coincided with the government’s granting of bonus payments in the first quarter to public-sector employees equal to two months’ salary, a move matched by many private-sector businesses. “There is a lot of liquidity out there and maybe they are just thinking a little bit about inflation,” said Paul Gamble, head of research at Riyadh-based Jadwa. “We could well see more treasury-bill issuance.”