The Central Bank has announced that the money supply aggregate, M0, (currency in circulation (81.2% of total) + cash at banks (18.8% of total) increased by 6.3%, from AED66.6 billion at the end of August 2014 to AED70.8 billion at the end of September of the same year.
The money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) decreased by 0.1%, from AED 431.4 billion at the end of August 2014 to AED 431.1 billion at the end of September of the same year, as a result of an increase in currency in circulation (12.5% of total) by 5.9% which was offset by a decrease in monetary deposits (87.5% of total) by 0.9%.
The money supply aggregate M2 which comprises M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), increased by 0.5%, from AED 1,130.7 billion at the end of August 2014 to AED 1,136.1 billion at the end of September of the same year, due to an increase in quasi-monetary deposits (61.8% of total) by 0.8%.
The money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) decreased by 0.4%, from AED 1,349.6 billion at the end of August to AED 1,344.2 billion at the end of September due to a decrease in government deposits (16.2% of total) by 4.9% Total bank assets (on a gross basis and including bankers’ acceptances) increased by 1.7%, during the month of September, reaching AED 2,311.3 billion, while total bank loans and advances (on a gross basis) increased by 2.5%, reaching AED 1,381.9 billion.
Total bank deposits decreased by 0.5% during the month of September, reaching AED 1,414.5 billion, as a result of a decrease in resident deposits (90.6 percent of total) by AED 6.4 billion and a decrease in non-resident deposits (9.4 percent of total) by AED 1.1 billion.
Starting February 2014, data on total bank loans and advances and total bank assets is presented on a gross basis instead of the previous practice of presenting them on a net of provisions basis. In addition, starting April 2014, bankers’ acceptances are included in total bank assets.
Source : WAM News Agency for United Arab Emirates
