Money supply decreases 1.6% in June: Central Bank

The Central Bank of the UAE has announced that the Money Supply aggregate, M1, decreased by 1.6 per cent, from Dh488.9 billion at the end of May 2016 to Dh481 billion at the end of June.

The Money Supply aggregate M2 decreased by 0.5 per cent, from Dh1,186.4 billion at the end of May 2016 to Dh1,180.4 billion at the end of June.

The Money Supply aggregate M3 also decreased by 0.5 per cent, from Dh1,371.3 billion at the end of May 2016 to Dh1,364.8 billion at the end of June.

The reduction in M1 was mainly due to a decrease of Dh9.3 billion in Monetary Deposits. The decrease in M2 was mainly attributed to a reduced M1, which overshadowed Dh1.9 billion increase in Quasi-Monetary Deposits. M3 too decreased owing to reduced M1 and M2 and Dh0.5 billion reduction in Government Deposits.

Gross bank assets, including bankers’ acceptances, increased by 0.5 per cent, increasing from Dh2,506.1 billion at the end of May 2016 to Dh2,518.5 billion at the end of June. Gross credit also increased by 0.8 per cent, rising from Dh1,531.8 billion at the end of May 2016 to Dh1,543.4 billion at the end of June.

During June 2016, total bank deposits decreased by Dh12.5 billion due to Dh7 billion and Dh5.5 billion decreases in Resident Deposits and Non-Resident Deposits, respectively.

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