Money supply increases by 2.3%

The UAE Central Bank on Thursday announced that money supply M0 (currency in circulation + currency at banks) increased by 2.3 per cent from Dh52 billion at the end of October 2011 to Dh53.2 billion at the end of November of the same year.

“Money supply aggregate, M1 (currency in circulation plus monetary deposits; current accounts and call accounts at banks) increased by 2.2 per cent from Dh258.8 billion at the end of October to Dh264.6 billion at the end of November of 2011," it said in an emailed press release.

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 0.4 per cent from Dh818.9 billion at the end of October to Dh822.1 billion at the end of November 2011.

Money supply aggregate, M3, (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank), increased by 0.6 per cent from Dh1,003.9 billion at the end of October to Dh1,009.8 billion at the end of November 2011.

Total bank deposits decreased by 0.8 per cent in November 2011 to Dh1,053.8 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) as well as total bank assets increased by 0.1 per cent to reach Dh1,074.5 billion and Dh1,672.9 billion, at the end of November 2011, respectively.

During the first eleven months of 2011, intermediary monetary aggregate M2 increased by 4.5 per cent, while bank loans and advances increased by 4.2 per cent and bank deposits by 0.4 per cent, the Central Bank added.

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