Central Bank General Reserve Fund soars 33.8% to reach 1.943 billion dinars

The General Reserve Fund at the Central Bank of Kuwait recorded its largest monthly increase ever, surging by 33.8 percent, or 491 million dinars, to reach 1.943 billion dinars in May 2025, up from 1.451 billion dinars in December 2024.

This jump came after the reserve balance had remained stable at 1.451 billion dinars for the first four months of the year. The previous increase in the fund was 451 million dinars, recorded in May 2024.

According to Central Bank data for May, government accounts fell by 4.4 percent—or about 75 million dollars—reaching 1.615 billion dollars, down from 1.69 billion in December. The monthly decline alone in May was approximately 206.2 million dollars, or 12.2 percent, reports Al-Rai daily.

Meanwhile, the combined value of cash balances, bonds, certificates of deposit, treasury bills, and foreign currency deposits rose by 3.3 percent over the first five months of the year, increasing by 399.1 million dinars to a total of 12.486 billion dinars, up from 12 billion in December. However, these assets experienced a decline of 4.4 percent, or 531.4 million dinars, on a monthly basis in May.

Central Bank bonds saw a sharp decline of 12.5 percent, dropping to 775 million dinars from 885 million at the end of last year. In May alone, they fell by 6.7 percent, or 60 million dinars. Accounts and deposits of local banks with the Central Bank increased by 2.65 percent—or 145.2 million dinars—reaching 5.609 billion dinars compared to 5.464 billion in December. However, they dropped by 10.4 percent, or 569.7 million dinars, on a monthly basis.

The Central Bank’s total assets increased by 218.8 million Egyptian pounds, or 1.75 percent, reaching 12.721 billion pounds at the end of May, up from 12.5 billion in December. On a monthly basis, however, they declined by 4.3 percent, or 536.1 million pounds, compared to 13.257 billion in April.

Gold reserves remained stable at 31.7 million dinars. Other assets saw a sharp drop of 47 percent, or 180.3 million dinars, falling to 203 million dinars. Cash in circulation increased by 3.2 percent, or 63.4 million dinars, reaching 2.048 billion dinars, compared to 1.985 billion in December. On a monthly basis, it also rose by 2 percent, or 40 million dinars.

Liabilities grew by 1.7 percent, or 218.8 million dinars, bringing the total to 12.72 billion dinars compared to 12.5 billion in December. However, other liabilities fell by 45.7 percent, or 318.4 million dinars, dropping from 696.7 million dinars in December to 378.3 million in May. The balance of international institutions increased significantly by 33.3 percent, or 14.2 million dinars, reaching 56.8 million dinars.

In accounting terms, the Central Bank is obligated to transfer its net annual profits to the General Reserve Fund, in line with the financial practices of independent institutions. These net profits are determined after deducting operational expenses, provisions for bad or doubtful debts, asset depreciation, contributions to the retirement fund, and other reserves.

The last increase in the reserve fund occurred in May 2024, when the balance rose from 1 billion to 1.451 billion dinars. In June 2023, the fund reached the 1 billion mark after a 7.4 million dinars injection.

The reserve has seen consistent growth over the past five years: in June 2020, it rose from 760.4 million to 954.9 million dinars; in May 2021, from 954.9 million to 976.7 million; in May 2022, from 976.7 million to 992.6 million; in June 2023, to 1 billion dinars; in May 2024, to 1.451 billion; and now, in May 2025, to 1.943 billion dinars.