Money supply decreases 2.1%

The UAE's Central Bank announced on Monday that money supply M0 (currency in circulation + currency at banks) decreased by 2.1 per cent from Dh53.2 billion at the end of November 2011 to Dh52.1 billion at the end of December of the same year.

Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) decreased by 0.2 per cent, from Dh264.6 billion at the end of November to Dh264.1 billion at the end of December of 2011.

Money supply aggregate M2 which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), increased by 0.5 per cent, from Dh822.1 billion at the end of November to Dh825.8 billion at the end of December 2011.

Money supply aggregate, M3 (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) decreased by 0.8 per cent, from Dh1,009.8 billion at the end of November to Dh1,001.4 billion at the end of December 2011.

Total bank deposits increased by 1.5 per cent during the month of December 2011 to close at Dh1,069.7 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) decreased by 0.3 per cent to reach Dh1,071.0 billion and total bank assets decreased by 0.6 per cent to reach Dh1,662.1 billion, at the end of December 2011.

During the year 2011, intermediary monetary aggregate M2 increased by 5.0 per cent, while bank loans and advances increased by 3.8 per cent and bank deposits by 1.9 per cent.

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