The Central Bank of the UAE (CBUAE) revealed in a report issued today an increase in cash deposits to AED725.8 billion in February 2024, with an annual increase of 11 percent or the equivalent of AED71.2 billion, compared to AED654.6 billion in February 2023.
The Central Bank's cash aggregates statistics explained that cash deposits increased on a monthly basis by 1.92 percent or the equivalent of AED13.7 billion, compared to about AED712.1 billion in January 2024.
In February 2024, the Central Bank reported a surge in quasi-cash deposits to AED1.258 trillion, marking a 27.4% annual increase. These deposits rose by 5% monthly, reaching AED59.4 billion. Government deposits also grew to AED430.3 billion, up 11.1% annually. The money supply expanded to approximately AED139.4 billion, with a 12.8% yearly rise, and a 3.1% monthly increase. The monetary base escalated by 28.3% annually, reaching AED689.5 billion, with a 3% monthly uptick. It comprises cash certificates, current accounts, and circulating cash outside banks, among others.
The Central Bank attributed the main reason for the monthly increases in reserve accounts, current accounts, and overnight deposits for banks at the Central Bank, starting from April 2023, to the increase in the banks' reserve requirements for demand deposits from 7 percent to 11 percent.
News Source: Emirates News Agency
