Ad

Central Bank Reports Growth in UAE Money Supply, Bank Assets, and Deposits in July 2024

Central Bank Reports Growth in UAE Money Supply, Bank Assets, and Deposits in July 2024
Ad

The Central Bank of the UAE announced a growth in key financial indicators for July 2024, with increases recorded across various money supply aggregates, bank assets, and deposits.

The money supply aggregate M1 rose by 0.6% from AED884.1 billion in June to AED889.3 billion in July, driven by a modest AED0.2 billion increase in currency in circulation outside banks and a more substantial AED5.0 billion rise in monetary deposits. Similarly, M2 grew by 1.7% to AED2,205.9 billion, fueled by the M1 increase and a notable AED31.3 billion boost in quasi-monetary deposits. M3 also saw a 1.7% increase, reaching AED2,676.0 billion due to M2 growth and a AED7.5 billion rise in government deposits.

However, the monetary base decreased by 1.0%, from AED725.0 billion to AED718.1 billion, mainly due to a 12.0% reduction in the reserve account and a 0.5% decline in currency issued. This drop overshadowed increases in banks' current accounts and overnight deposits by 26.6% and a marginal 0.04% rise in monetary bills and Islamic certificates of deposit.

Bank assets, including bankers’ acceptances, rose by 0.9% to AED4,348.6 billion. Gross credit expanded slightly by 0.1% to AED2,102.1 billion, with a 0.3% increase in domestic credit offsetting a 1.5% decline in foreign credit. Domestic credit growth was supported by increases in lending to the government and private sectors.

Total bank deposits grew by 1.6%, reaching AED2,736.0 billion. This increase was due to a rise in resident deposits by 1.5% and non-resident deposits by 2.4%, with significant gains seen in deposits from government-related entities.

News Source: Emirates News Agency

Ad
Ad
Shahba Mayyeri

Written by Shahba Mayyeri

Shahba is a Content Creator at HiDubai with 3 years of experience in crafting compelling stories and articles. She holds a Master’s degree in Media and Communications from MAHE Dubai.
Ad
Dark Light