UAE money supply remains static in November

The UAE Central Bank announced that at the end of November 2010, Money Supply M1 (currency in circulation plus monetary deposits, current accounts and call accounts at banks) remained at the same level as in October, at Dh231.4 billion.

Broad 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) decreased from Dh797.4 billion as at the end of October 2010 to Dh784.6 billion at end of November of the same year (-1.6 per cent), due to a decrease in quasi-monetary deposits by Dh12.8 billion, the Bank said in a statement.

Broader Money Supply M3 (M2 plus government deposits at the banking sector) decreased from Dh998.7 billion at the end of October 2010 to Dh987.0 billion at the end of November of the same year (-1.2 per cent).
For the first 11 months of 2010, the intermediary aggregate M2 increased by 5.9 per cent, which is consistent with current estimates of economic growth and inflation in the UAE.

As regards bank loans and advances (net of provisions and interest in suspense), they increased slightly by 0.3 per cent during the month of November, and they increased moderately by 2.3 per cent, during the first 11 months of 2010, which reflects banks cautiousness and low demand from the private sector.

Meanwhile, total bank assets increased by 7.5 per cent, reaching Dh1.6 trillion at the end of November 2010.

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