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Abu Dhabi / WAM
The central bank announced that the money supply aggregate M1 increased by 0.5%, from AED719.4 billion at the end of August to AED723.0 billion at the end of September.
The money supply aggregate M2 increased by 1.1%, from AED1,627.7 billion at the end of August to AED1,645.6 billion at the end of September.
The money supply aggregate M3 also rose by 1.6%, from AED2,016.1 billion at the end of August to AED 2,048.1 billion at the end of September. The increase in M1 was due to AED0.7 billion rise in currency in circulation outside banks and AED2.9billion growth in monetary deposits.
M2 increased due to an expanded M1 and AED14.3 billion ascent in quasi monetary deposits. M3 grew due to an augmented M2 and AED14.1 billion increase in government deposits.
The monetary base contracted by 1.9% falling from AED475.4 billion at the end of August to AED466.5 billion at the end of September. The main driver of this reduction in the monetary base was decrease in banks & OFCs’ current accounts and overnight deposits of banks at CBUAE by 30.9%.
, overshadowing the increase in currency issued and reserve account by 1.7% and 29.5%, respectively. Whereas, certificates of deposit & monetary bills remained constant.
Gross banks’ assets, including bankers’ acceptances, jump 1.7%, rising from AED3,523.5 billion at the end of August to AED3,583.0 billion at the end of September.
Gross credit rose by 1.2% from AED1,851.1 billion at the end of August to AED1,873.4 billion at the end of September. Gross credit increased due to 1.0% rise in domestic credit and 3.2% increase in foreign credit.
Domestic credit grew because of 0.2%, 3.0%, 0.6% and 2.3% climb in credit to government sector, public sector (government related entities), private sector and non-banking financial institutions, respectively.
Total bank deposits increased by 0.9%, climbing from AED2,166.6 billion at the end of August to AED2,186.9 billion at the end of September. The growth in total bank deposits was due to the rise in resident deposits by 1.6%, superseding the reduction in non-resident deposits by 4.1%. Resident deposits increased owing to 3.6%, 1.7%, and 33.8% 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%.