UAE money supply increases 3.5% to Dh426.3bn

The UAE Central Bank has announced that the money supply aggregate M1 (currency in circulation plus monetary deposits, i.e. current accounts and call accounts at banks) increased by 3.5 per cent, from Dh412 billion at the end of March 2014 to Dh426.3bn by end-April, 2014.

In its statement, the Central Bank announced that the money supply aggregate M0 (currency in circulation + currency at banks) decreased by 0.2 per cent, from Dh65.3bn to Dh65.2bn for the same period.

The 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), decreased by 0.1 per cent, from Dh1,124.3bn at the end of March to Dh1,123.7bn at the end-April .

The money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) increased by 1.0 per cent, from Dh1,280.2bn to Dh1,293.0bn.

Total bank deposits increased by 1.0 per cent during April to reach Dh1,345bn, as a result of an increase in resident deposits by Dh8.9bn and an increase in non-resident deposits by Dh4.4bn.

Total bank loans and advances (gross basis) increased by 0.6 per cent during the month of April to reach Dh1,311.4bn, while total bank assets (gross basis) decreased by 0.2 per cent to reach Dh2,175.7bn, during the same period.

The Central bank also announced that from February 2014, data on total bank loans and advances and total bank assets is presented on a "gross basis" instead of the previous practice of presenting them on a “net of provisions basis”.

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