UAE money supply up by 4.2%

Central Bank of the UAE, announced that money supply M0 (currency in circulation + currency at banks) increased by 4.2 per cent from Dh49.9 billion at the end of September 2011 to Dh52 billion at the end of October of the same year.

Money supply aggregate, M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 1.9 per cent, from Dh254.0 billion at the end of September to Dh258.8 billion, at the end of October of 2011.

Money supply aggregate, M2 which comprises of M1 and quasi-monetary deposits (which are the sum of resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), increased by 0.6 per cent, from Dh813.7 billion at the end of September to Dh818.9 billion at the end of October 2011.

Money supply aggregate, M3. (M2 plus government deposits at the banking sector) remained stable during this period, reaching Dh1,003.9 billion at the end of October 2011.

Bank deposits decreased by 0.4 per cent to close at Dh106.2 billion at the end of October, 2011. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) decreased by 0.2 per cent to reach Dh1,073.3 billion, and total bank assets decreased by 0.1 per cent to reach Dh1,670.4 billion at the end of October 2011.

During the first ten months of 2011, both intermediary monetary aggregate M2 and bank loans and advances increased by 4.1 per cent, while bank deposits increased by 1.3 per cent, during the same period.

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