Kuwaiti Banks increase financing for imports by over 2 billion dinars in 2023
Data released by the Central Bank of Kuwait has revealed that Kuwaiti banks provided an average daily amount of 28.5 million dinars in foreign currencies to finance the country’s imports. The data shows that the total amount provided by Kuwaiti banks to finance imports from abroad increased by more than two billion dinars during 2023, reported Al-Anba Daily.
It rose by 24.2% to 10.42 billion dinars compared to 8.39 billion dinars in 2022. The data further highlights that the highest volume of financing for imports during 2023 was recorded in May, reaching 1.8 billion dinars, followed by March with 1.1 billion dinars, and April with one billion dinars. Financing in US dollars accounted for 85% of the total financing, amounting to 8.8 billion dinars in 2023. Compared to the previous year, this represents an increase of 25.35%, equivalent to 1.78 billion dinars.
The highest value of dollar financing occurred in March at approximately 932 million dinars, followed by April with 928 million dinars, then September with 794 million dollars, and January with 731 million dollars. The Euro accounted for 4.4% of the total import financing in 2023, reaching about 456.5 million dinars. Compared to the previous year, financing in euros decreased by 0.95%, amounting to 4.4 million dinars. The highest volume of financing in euros was recorded in May at 61.4 million dinars, followed by January with 45.9 million dinars, December with 43 million dinars, and June with 40.7 million dinars.
The British pound represented 0.45% of total import financing in 2023, amounting to 46.3 million dinars. However, import financing in sterling increased by approximately 8% compared to the previous year, amounting to 3.4 million dinars. The highest rate of financing imports in British pounds occurred in September at 6.7 million dinars, followed by May with 5.3 million dinars, December with 4.7 million dinars, and June with 4.1 million dinars.
The Japanese yen accounted for 0.47% of total import financing in Kuwait in 2023, amounting to 49.5 million dinars. Financing in this currency witnessed a 24% increase compared to the previous year, equal to 9.6 million dinars. The highest volume of financing in Japanese yen was recorded in March at approximately 11.7 million dinars, followed by May with 5.9 million dinars, June with 4.5 million dinars, and July with 4 million dinars.
Local banks provided approximately 10 million dinars in financing in Swiss francs during 2023, a decline of 51.45% compared to the previous year when financing amounted to approximately 20.6 million dinars. Financing in Swiss francs represented 0.09% of the total financing. The highest volume of financing in Swiss francs occurred in May at 2.4 million dinars, followed by April with 1.9 million dinars.
Furthermore, financing of imports in Saudi riyals increased by 72.45% during 2023, amounting to 141.7 million dinars compared to 82.2 million dinars in 2022. The Saudi riyal accounted for approximately 1.35% of total import financing. May recorded the highest volume of financing in Saudi riyals at 18.8 million dinars, followed by August with 17.2 million dinars and March with 16.1 million dinars.
The UAE dirham accounted for 1.8% of the total import financing in Kuwait during 2023, amounting to 187.7 million dinars. Compared to the previous year, financing in dirhams increased by 15.4% to 25.1 million dinars from 162.6 million dinars. May had the highest volume of financing in dirhams at 25 million dinars, followed by October with 19.1 million dinars, July with 18.4 million dirhams, and March with 17.3 million dinars.
The remaining foreign currencies used to finance imports accounted for 6.5% of the total financing in 2023, reaching 679 million dinars. This represents an increase of 30% compared to the previous year, amounting to 156.1 million dinars. March recorded the highest rate of financing in other currencies at 85.1 million dinars, followed by December with 68.3 million dinars, and May with 64.7 million dinar
