UAE Central Bank announces M1 decreases by 0.8%

The Central Bank has announced that the Money Supply aggregate M1 decreased by 0.8%, from AED488.1 billion at the end of August 2018 to AED484.2 billion at the end of September 2018.

In a statement, the bank said, "The Money Supply aggregate M2 increased by 1%, from AED1278.9 billion at the end of August 2018 to AED1291.1 billion at the end of September 2018.

Similarly, the Money Supply aggregate M3 also increased by 1.5%, from AED1556.9 billion at the end of August 2018 to AED 1579.8 billion at the end of September 2018.

The reduction in M1 was mainly due to a decrease of AED4.7 billion in Monetary Deposits, overshadowing an AED 0.8 billion increase in Currency in Circulation outside Banks. The rise in M2 was brought about by the AED 16.1 billion increase in Quasi-Monetary Deposits. M3 rose due to an increased M2 and an AED 10.7 billion increase in Government Deposits.

Gross bank assets, including bankers’ acceptances, increased by 1.4%, rising from AED2800.3 billion at the end of August 2018 to AED2838.2 billion at the end of September 2018.

Gross credit also increased by 0.3% from AED1632.8 billion at the end of August 2018 to AED1638.3 billion at the end of September 2018.

During September 2018, total bank deposits increased by AED25.3 billion, due to an AED20.8 billion increase in Resident Deposits and an AED4.5 billion increase in Non-Resident Deposits."

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