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28 March 2024

UAE money supply increases to Dh1.348 trillion

World Islamic Banking Competitiveness report, banking clients were most satisfied with customer service. (File)(File)

Published
By Wam

The Central Bank has announced that the money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) increased by 0.3 per cent from Dh1.344 trillion at the end of September to Dh1.348 trillion at the end of October due to an increase in government deposits.

The money supply aggregate M0, currency in circulation (81.4 per cent of total) + cash at banks (18.6 per cent of total), decreased by 1.1 per cent, from Dh70.8 billion at the end of September 2014 to Dh70 billion at the end of October of the same year.

The money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 0.9 per cent, from Dh431.1 billion at the end of September 2014 to Dh435 billion at the end of October of the same year, as a result of an increase in monetary deposits (86.9 per cent of total) by 1.1 per cent which was offset by a decrease in currency in circulation (13.1 per cent of total) by 0.5 per cent.

The money supply aggregate M2 which comprises M1 and quasi-monetary deposits (resident time and savings deposits in dirhams, commercial prepayments in dirhams and resident deposits in foreign currencies), decreased by 0.9 per cent, from Dh1.136 trillion at the end of September 2014 to Dh1,125.6 billion at the end of October of the same year, due to a decrease in quasi-monetary deposits (61.4 per cent of total) by 2 per cent.

Total bank assets (on a gross basis and including bankers’ acceptances) decreased by 0.7 per cent, during the month of October, reaching Dh2.295 trillion, and total bank loans and advances (on a gross basis) decreased by 0.4 per cent, reaching Dh1.376 trillion.

Total bank deposits increased by Dh0.5 billion during the month of October, reaching Dh1.415 trillion, as a result of an increase in resident deposits (90.8 percent of total) by Dh2.4 billion and a decrease in non-resident deposits (9.2 percent of total) by Dh1.9 billion.

Since February 2014, data on total bank loans and advances and total bank assets have been presented on a "gross basis" instead of the previous practice of presenting them on a "net of provisions basis". In addition, starting April 2014, bankers’ acceptances are included in total bank assets.