Sharjah 24 – WAM: The Central Bank of the UAE (CBUAE) announced that the Money Supply aggregate M1 increased by 4.0 percent, from AED797.4 billion at the end of November 2023 to AED829.3 billion at the end of December 2023. This was due to the AED1.9 billion rise in Currency in Circulation Outside Banks and the AED30 billion growth in Monetary Deposits.
The Money Supply aggregate M2 rose by 4.5 percent, from AED1,935.4 billion at the end of November 2023 to AED2,023.4 billion at the end of December 2023. M2 rose due to an increased M1 and AED56.1 billion rise in Quasi-Monetary Deposits.
The Money Supply aggregate M3 also increased by 2.4 percent, from AED2,388.6 billion at the end of November 2023 to AED2,445.2 billion at the end of December 2023. M3 Increased because of an augmented M2, overriding the AED31.4 billion reduction in Government Deposits.
The Monetary Base expanded by 7.3 percent, from AED614.0 billion at the end of November 2023 to AED658.8 billion at the end of December 2023. The main driver of this increase in the Monetary Base was the rise in Currency Issued by 1.5 percent, in Reserve Account by 6.4 percent, in Banks and OFCs’ Current Accounts and Overnight Deposits of Banks at CBUAE by 32.9 percent and in Monetary Bills and Islamic Certificates of Deposit by 0.2 percent.
Gross banks’ assets, including bankers’ acceptances, rose by 1.2 percent, from AED4,026.0 billion at the end of November 2023 to AED4,075.2 billion at the end of December 2023.
Gross credit fell by 0.1 percent from AED1,994.5 billion at the end of November 2023 to AED1,991.7 billion at the end of December 2023. Gross Credit dropped due to a lessening of Domestic Credit by 0.8 percent, overriding the increase in Foreign Credit by 4.6 percent. Domestic Credit diminished because of 0.9 percent, 1.3 percent and 1.3 percent shrinkage in credit to the Government Sector, the Public Sector (Government Related Entities) and the Private Sector, respectively.
Whereas, credit to the Non-Banking Financial Institutions increased by 66.1 percent, during December 2023.
Total Bank Deposits soared by 3.2 percent, increasing from AED2,444.3 billion at the end of November 2023 to AED2,521.9 billion at the end of December 2023. The rise in Total Bank Deposits was due to the combined growth in Resident Deposits by 2.7 percent and Non-Resident Deposits by 8.9 percent.
Resident Deposits expanded owing to an increase in Public Sector (Government Related Entities) Deposits by 2.2 percent, Private Sector Deposits by 4.2 percent and Non-Banking Financial Institutions Deposits by 44.9 percent. Meanwhile, Government Sector deposits fell by 6.8 percent.
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