Wednesday 25, October 2017 by Nabilah Annuar

UAE money supply decreases in September

Central Bank of the UAE has released its banking and monetary developments for September 2017.

The UAE Central Bank has announced that the money supply aggregate M1 decreased by 0.9 per cent, from AED493.2 billion at the end of August 2017 to AED 488.9 billion at the end of September 2017.

The money supply aggregate M2 increased by 0.9 per cent, from AED1,245.5 billion at the end of August 2017 to AED 1257.2 billion at the end of September 2017.

The money supply aggregate M3 also increased by 0.5 per cent, from AED 1,450.6 billion at the end of August 2017 to AED1,458 billion at the end of September 2017.

The fall in M1 was mainly due to a reduction of AED 2.9 billion in monetary deposits. The rise in M2 was brought about by an AED 16 billion increase in quasi monetary deposits. M3 mainly increased due to an increased M2, overshadowing an AED 4.3 billion reduction in Government Deposits.

Gross bank assets, including bankers’ acceptances, increased by 0.9 per cent, rising from AED 2,619 billion at the end of August 2017 to AED 2,643.2 billion at the end of September 2017.

Gross credit also increased by 0.1 per cent, rising from AED1,579 billion at the end of August 2017 to AED 1,580 billion at the end of September 2017.

During September 2017, total bank deposits also increased by AED 13.6 billion mainly due to AED 7.6 billion and AED 6 billion increase in Resident Deposits and Non-Resident Deposits, respectively.

Note:

M1 = Currency in circulation outside banks + monetary deposits (current accounts and call accounts at banks)

M2 = M1 + quasi-monetary deposits (resident time and saving deposits in dirhams and resident deposits in foreign currencies)

M3 =M2 + government deposits at banks operating in the UAE as well as at the central bank