Economy
50
June 12, 2024June 12, 2024
CBUAE issues summary report of monetary, banking developments for March 2024

The Central Bank of the UAE announced that the money supply aggregate M1 increased by 3.7%, from AED847.0 billion at the end of February 2024 to AED878.1 billion at the end of March 2024. This was due to AED6.0 billion rise in currency in circulation outside banks, combined with AED25.1 billion increase in monetary deposits.

In a statement today, the CBUAE said that the money supply aggregate M2 increased by 1.4%, from AED2,104.7 billion at the end of February 2024 to AED2,134.8 billion at the end of March 2024.

M2 increased mainly due to an elevated M1, overriding the AED1.0 billion reduction in Quasi-Monetary Deposits.

The money supply aggregate M3 increased by 1.9%, from AED2,535.0 billion at the end of February 2024 to AED2,583.7 billion at the end of March 2024. M3 increased mainly because of an amplified M2, combined with an increase of AED18.6 billion in government deposits.

The monetary base expanded by 2.1%, from AED689.5 billion at the end of February 2024 to AED703.7 billion at the end of March 2024. The rise in the monetary base was driven by the growth in key sub-categories: currency issued increased by 5.4%, reserve account by 21.0%, and monetary bills and Islamic certificates of deposit by 2.8%, overshadowing the decline recorded in banks and OFCs’ current accounts and overnight deposits of banks at CBUAE by 34.8%.

Gross banks’ assets, including bankers’ acceptances, increased by 1.3%, from AED4,198.0 billion at the end of February 2024 to AED4,254.5 billion at the end of March 2024.

Gross credit grew by 1.7% from AED2,013.5 billion at the end of February 2024 to AED2,047.0 billion at the end of March 2024. Gross credit growth was driven by the increase in domestic credit by 1.1% and in foreign credit by 5.3%.

Domestic credit expansion was due to an increase in credit to the public sector (government-related entities), the non-banking financial institutions, and the private sector by 2.8%, 1.7%, and 1.4%, respectively.

Total bank deposits climbed by 1.9%, increasing from AED2,608.0 billion at the end of February 2024 to AED2,657.1 billion at the end of March 2024. The increase in total bank deposits was due to the growth in resident deposits by 1.5% and in non-resident deposits by 6.4%.

Resident deposits expanded as a result of the growth in non-banking financial institutions deposits by 17.8%, government sector deposits by 3.3%, and private sector deposits by 2.0%.