The Central Bank of the UAE said that total bank deposits increased by 0.3 percent, climbing from AED 1,982.4 billion at the end of January 2022 to AED 1,988.2 billion at the end of February 2022.
The bank said the rise in total bank deposits was due to growth in Resident Deposits by 0.5 percent, overshadowing the reduction in Non-Resident Deposits by 1.4 percent.
Resident deposits rose due to 1.7 percent, 1.4 percent and 8.9 percent appreciation in government sector deposits, private sector deposits and non-banking financial institutions deposits, respectively.
Public sector deposits fell by 6.4 percent, the apex bank said in its Monetary & Banking Developments Report for February 2022.
The Money Supply aggregate M1 increased by 0.8 percent, from AED 706.5 billion at the end of January 2022 to AED 712.1 billion at the end of February 2022, the CBUAE added.
The Money Supply aggregate M2 grew by 0.4 percent, from AED 1,563.4 billion at the end of January 2022 to AED 1,570.3 billion at the end of February 2022.
The Money Supply aggregate M3 also increased by 0.6 percent, from AED 1,856.6 billion at the end of January 2022 to AED 1,867.8 billion at the end of February 2022.
“The rise in M1 was due to AED 3.3 billion surge in Currency in Circulation Outside Banks and AED 2.3 billion rise in monetary deposits. M2 increased due to an elevated M1 combined with AED 1.3 billion increase in quasi-monetary deposits. M3 grew due to increased M1 and M2 accompanied by AED 4.3 billion ascent in government deposits,” explained the report.
The monetary base expanded by 1.1 percent, rising from AED 481.2 billion at the end of January 2022 to AED 486.7 billion at the end of February 2022.
The main drivers of this expansion were increases in currency issued by 2.3 percent, reserve account by 21 percent and Certificates of Deposit & Monetary Bills by 3.7 percent.
Whereas, Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE fell by 18.3 percent.
Gross banks’ assets, including bankers’ acceptances, fell by 0.2 percent, declining from AED 3,290.2 billion at the end of January 2022 to AED 3,282.1 billion at the end of February 2022.
Gross credit increased by 0.5 percent climbing from AED 1,800.4 billion at the end of January 2022 to AED 1,810.1 billion at the end of February 2022. Gross Credit rose due to 0.1 percent increase in Domestic Credit and 4.3 percent rise in Foreign Credit. Domestic Credit rose mainly due to increases by 0.1 percent and 12.9 percent in credit to Private Sector and Non-Banking Financial Institutions, respectively.
Overriding the reduction in credit to public sector (Government Related Entities) by 0.5 percent. Credit to Government Sector remained constant, the bank said