The volume of money transfers in the form of hard currencies remitted by foreigners (whether for personal purposes or to cover travel expenses) grew by 17.4 percent to SR112 billion in the first nine months of 2013 compared to SR95.4 billion in the similar period last year, according to a financial report.

Money transfers allocated for personal purposes rose by 1.8 percent to SR39.5 billion by the end of Q3, 2013 compared to SR35.1 billion in Q2, 2013, the report, filed by Al-Eqtisadaiah daily, said.

Meanwhile, the volume of foreign (hard) currencies purchased by local banks soared to SR823.5 billion by the end of Q3, 2013 compared to SR404.7 billion in Q2, 2013, the report said.

The purchased quantities of hard currencies grew by 12.6 percent in Q3, 2013 compared to SR731.1 billion in Q3, 2012, the report citing data released by Saudi Arabian Monetary Agency (SAMA) said.

On the other hand, hard currency purchases by the local banks fell by 2.4 percent to SR2.38 trillion in the first nine months of 2013 compared to SR2.44 trillion in the same period last year, the report said. Foreign currencies are normally purchased from five major sources — SAMA, domestic banks, foreign banks, customers and other sources.

Turnout to buy foreign currencies from local banks and other sources rose by 12.7 percent and 0.14 percent to reach SR183.5 billion and SR47.8 billion, respectively, in Q3, 2013 compared to Q2 2013 while it fell by 9.4 percent, 0.15 percent and 9.3 percent from SAMA, foreign banks and customers to reach SR132.3 billion, SR397.9 billion and SR62.1 billion, respectively, the report added.

Foreign banks captured the lion’s share of the foreign currency purchases by the end of Q3, 2013 at 48.3 percent, followed by domestic banks (22.3 percent) and SAMA (16.1 percent), the report said.

In a related development, sales of foreign currencies by the local banks fell by 1.5 percent to reach SR112.1 billion by the end of Q3, 2013 compared to SR113.8 billion in Q2, 2013, the report said. However, total sales of foreign currencies grew by 9.7 percent in Q3, 2013 to reach SR328.5 billion compared to figures of the equivalent period last year.

Foreign currency sales are meant to fund imports, foreign contractors, personal transfers, travel expenses and foreign investments, according to the report.

Foreign currency sales to finance imports constituted the biggest portion of sales by 43.5 percent valued at SR48.7 billion by the end of Q3, 2013, followed by personal remittances at 35.3 percent (SR39.5 billion) and personal money transfer by Saudis at 16.4 percent (SR18.4 billion), the report said.