Bahraini money supply growth fell to 13.9 per cent in April, the slowest rate in more than two years, central bank data showed.
M3, the broadest measure of money circulating the Bahraini economy, stood at BD7.98 billion (Dh77.73bn) on April 30 compared with BD7.01bn a year earlier, the central bank said in a monthly bulletin on its website.
Growth in money supply, one indicator of future inflation, has decelerated rapidly since peaking at an annual rate of almost 37 per cent last June. April's annual money supply growth was the slowest since March 2007.
Month on month, money supply was down almost one per cent as funds held in time and savings deposits declined 2.1 per cent month on month to BD4.6bn while demand deposits fell 0.9 per cent to BD1.76bn, the data showed.
The central bank's net foreign assets dipped to BD1.39bn in April from BD1.42bn in March, its third straight month of declines.
Meanwhile, Bahrain will issue a benchmark-sized dollar five-year sukuk at initial guidance of a spread of 350 basis points over US Treasuries, an official at one of the lead managers said yesterday.
Order books are open on the deal, the official added.
Calyon, Deutsche and HSBC are lead managers of the Islamic bond. Bahrain's central bank has said the country plans a $500 million issue.
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