Thursday 05, January 2017 by Nabilah Annuar

UAE witnesses an increase in its money supply aggregate

The Central Bank of the UAE in a recent announcement reported that the Money Supply aggregate M1 has increased by 0.04 per cent, from AED 472.4 billion at the end of October 2016 to AED 472.6 billion at the end of November 2016.

The Money Supply aggregate M2 increased by 0.8 per cent, from AED 1,203.3 billion at the end of October 2016 to AED 1,212.9 billion at the end of November 2016.

The Money Supply aggregate M3 increased by 1.7 per cent, from AED 1,362.9 billion at the end of October 2016 to AED 1,385.8 billion at the end of November 2016.

The increase in M1 was mainly due to an increase of AED 0.6 billion in currency in circulation outside

banks, which overshadowed the decrease of AED 0.4 billion in Monetary Deposits. The increase in M2 was mainly attributed to an increase of AED 9.4 billion in quasi-monetary deposits. M3 increased due to the rise of AED 13.3 billion in government deposits.

Gross bank assets, including bankers’ acceptances, increased by one per cent, rising from AED 2,544.4 billion at the end of October 2016 to AED 2,568.7 billion at the end of November 2016.

Gross credit increased by 0.4 per cent, rising from AED 1,570.2 billion at the end of October 2016 to AED 1,576.2 billion at the end of November 2016.

During November 2016, total bank deposits increased by AED 18 billion due to AED 22.2 billion increase in resident deposits despite AED 4.2 billion decrease in non-resident Deposits.

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