UAE money supply increases

Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e. current accounts and call accounts at banks) increased 2.6 per cent, from Dh327.4 billion at the end of March to Dh336 billion at the end of April.

The Central Bank of the UAE announced in a press release that the money supply M0 (currency in circulation + currency at banks) decreased by one per cent from Dh59.4 billion at the end of March to Dh58.8 billion at the end of April.

Money supply aggregate M2, which comprises M1and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), decreased by 0.7 per cent, from Dh915.3 billion at the end of March to Dh909 billion at the end of April.

Money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) increased by 1.6 per cent from Dh1,154.7 billion at the end of March to Dh1,173.6 billion at the end of April.

Total bank deposits increased by 0.3 per cent during the month of April, to close at Dh1,241.8 billion, as a result of an increase in resident deposits by 1.3 per cent. While total bank loans and advances (net of provisions and interest in suspense) decreased by 0.3 per cent to reach Dh1,122.2 billion, and total bank assets decreased by 0.6 per cent to reach Dh1,866.3 billion, at the end of April.

During the first four months of 2013, Monetary aggregate M2 increased by 5.4 per cent, while bank loans and advances increased by 2.1 per cent and total bank deposits increased by 6.3 per cent, as a result of an increase in resident deposits by 7.9 per cent.

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