UAE money supply down 1.9% in January

The UAE Central Bank announced that money supply M0 (currency in circulation + currency at banks) decreased by 1.9 per cent from Dh47.8 billion at the end of December 2010 to Dh46.9 billion at the end of January 2011.

Meanwhile, money supply M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 1.7 per cent from Dh232.9 billion to Dh236.9 billion.

In a statement on monetary and banking developments for January 2011, the bank said money supply M2, which comprises M1 plus quasi-monetary deposits (the sum of resident time and savings deposits in dirhams,
commercial prepayments in dirhams and resident deposits in foreign currencies), increased by 1.1 per cent from Dh786.4 billion as at the end of December 2010 to Dh795.2 billion at the end of January 2011.

And money supply M3 (M2 plus government deposits at the banking sector) increased by 1.2 per cent from Dh985.2 billion at the end of December 2010 to Dh997.5 billion at the end of January 2011.

Bank deposits increased by 0.7 per cent during the month of January 2011, reaching Dh1,057 billion.

Meanwhile, total loans and advances (net of provisions and interest in suspense) increased by 1.2 per cent, reaching Dh1,043.4 billion, and total bank assets increased by 1.4 per cent, reaching Dh1.63 trillion at the end of January 2011.