CBUAE reports increase in money supply, monetary base and bank deposits
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The Central Bank of the United Arab Emirates (CBUAE) announced that the M1 money supply aggregate increased by 4.0 percent, from AED 797.4 billion at the end of November 2023 to AED 829.3 billion at the end of December 2023.
In December 2023, the aggregate M2 money supply increased by 4.5%, reaching AED 2,023.4 billion, driven by an increase in money in circulation outside banks and monetary deposits. The aggregate money supply M3 also grew by 2.4%, reaching AED 2,445.2 billion, mainly due to an increase in M2, despite a reduction in government deposits. The monetary base expanded by 7.3% to AED 658.8 billion, driven by increases in the currency issued, the reserve account, current accounts of banks and OFC and overnight deposits of banks in the CBUAE , as well as Islamic money bills and certificates of deposit.
Banks’ gross assets, including banker’s acceptances, increased by 1.2%, reaching AED 4,075.2 billion. While gross credit decreased by 0.1% to AED 1,991.7 billion, credit to non-banking financial institutions increased significantly by 66.1%. Total bank deposits increased by 3.2% to AED 2,521.9 billion, with growth in resident deposits, non-resident deposits and notable expansions in deposits from the private sector and non-bank financial institutions .
News source: Emirates News Agency
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