The Central Bank of the United Arab Emirates (CBUAE) announced that the Money Supply aggregate M1 increased by 0.5 percent, from AED 719.4 billion at the end of August 2022 to AED 723.0 billion at the end of September 2022.
The Money Supply aggregate M2 increased by 1.1 percent, from AED 1,627.7 billion at the end of August 2022 to AED 1,645.6 billion at the end of September 2022.
The Money Supply aggregate M3 also rose by 1.6 percent, from AED 2,016.1 billion at the end of August 2022 to AED 2,048.1 billion at the end of September 2022. The increase in M1 was due to AED 0.7 billion rise in Currency in Circulation Outside Banks and AED 2.9 billion growth in Monetary Deposits. M2 increased due to an expanded M1 and AED 14.3 billion ascent in Quasi Monetary Deposits. M3 grew due to an augmented M2 and AED 14.1 billion increase in Government Deposits.
The Monetary Base contracted by 1.9 percent falling from AED 475.4 billion at the end of August 2022 to AED 466.5 billion at the end of September 2022. The main driver of this reduction in the Monetary Base was decrease in Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE by 30.9 percent, overshadowing the increase in Currency Issued and Reserve Account by 1.7 percent and 29.5 percent, respectively. Whereas, Certificates of Deposit & Monetary Bills remained constant.
Gross banks’ assets, including bankers’ acceptances, rose by 1.7 percent, rising from AED 3,523.5 billion at the end of August 2022 to AED 3,583.0 billion at the end of September 2022.
Gross credit rose by 1.2 percent from AED 1,851.1 billion at the end of August 2022 to AED 1,873.4 billion at the end of September 2022. Gross Credit increased due to 1.0 percent rise in Domestic Credit and 3.2 percent increase in Foreign Credit.
Domestic Credit grew because of 0.2 percent, 3.0 percent, 0.6 percent and 2.3 percent climb in credit to Government Sector, Public Sector (Government Related Entities), Private Sector and NonBanking Financial Institutions, respectively.
Total Bank Deposits increased by 0.9 percent, climbing from AED 2,166.6 billion at the end of August 2022 to AED 2,186.9 billion at the end of September 2022. The growth in Total Bank Deposits was due to the rise in Resident Deposits by 1.6 percent, superseding the reduction in Non-Resident Deposits by 4.1 percent. Resident Deposits increased owing to 3.6 percent, 1.7 percent, and 33.8 percent expansions in Government Sector Deposits, Public Sector (Government Related Entities) Deposits and Non-Banking Financial Institutions Deposits, individually. Whereas, Private Sector Deposits decreased marginally by 0.04 percent.
News Source: Emirates News Agency
