Money supply increases to Dh55.7bn

The Central Bank announced that money supply M0 (currency in circulation + currency at banks) increased by 1.1 per cent from Dh55.1 billion at the end of July 2012 to Dh55.7 billion at the end of August 2012.

Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) decreased by 0.5 per cent, from Dh286.4 billion at the end of July 2012 to Dh285.0 billion at the end of August of the same year.

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 0.3 per cent, from Dh832.5 billion at the end of July 2012 to Dh835.0 billion at the end of August of the same year.

Money supply aggregate, M3 (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) increased by 1.5 per cent, from Dh1,033 billion at the end of July to Dh1,048.8 billion at the end of August of the same year.

Total bank deposits increased by 1.1 per cent during the month of August 2012 to close at Dh1,127.1 billion.

Meanwhile, total bank loans and advances (net of provisions and interest in suspense) decreased by 0.1 per cent to reach Dh1,090.5 billion, and total bank assets increased by 0.5 per cent to reach Dh1,733.8 billion, at the end of August.

During the first 8 months of 2012, intermediary monetary aggregate M2 increased by 1.1 per cent, while bank loans and advances increased by 1.8 per cent and bank deposits increased by 5.4 per cent.

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