The UAE Central Bank announced that the money supply aggregate M1 increased by 2.3 percent, from AED 686.0 billion at the end of November 2021 to AED 701.9 billion at the end of December 2021.
The Money Supply aggregate M2 grew by 3.0 percent, from AED 1,517.1 billion at the end of November 2021 to AED 1,563.1 billion at the end of December 2021.
The Money Supply aggregate M3 also increased by 1.5 percent, from AED 1,830.1 billion at the end of November 2021 to AED 1,856.7 billion at the end of December 2021.
The rise in M1 was due to AED 16.6 billion increase in Monetary Deposits, overriding the AED 0.7 billion reduction in Currency in Circulation Outside Banks. M2 increased due to an elevated M1 and AED 30.1 billion climb in Quasi-Monetary Deposits. M3 rose due to increased M1 and M2, overshadowing AED 19.4 billion fall in Government Deposits.
The Monetary Base expanded by 4.8 percent rising from AED 461.7 billion at the end of November 2021 to AED 483.9 billion at the end of December 2021. The impetus behind this expansion in the Monetary Base was 8.9 percent and 35.7 percent increase in the Reserve Account and Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE, respectively. Whereas, Currency Issued and Certificates of Deposit & Monetary Bills reduced by 0.4 percent and 7.4 percent, separately.
Gross banks’ assets, including bankers’ acceptances, increased by 0.8 percent, rising from AED 3,295.8 billion at the end of November 2021 to AED 3,321.5 billion at the end of December 2021.
Gross credit increased by 0.3 percent climbing from AED 1,788.3 billion at the end of November 2021 to AED 1,794.0 billion at the end of December 2021. Gross Credit rose due to 0.1 percent and 2.6 percent increases in Domestic Credit and Foreign Credit, respectively. The growth in Domestic Credit was mainly due to increases by 0.7 percent, 1.7 percent and 7.0 percent in credit to Government Sector, Public Sector (Government Related Entities) and Non-Banking Financial Institutions, correspondingly. While Credit to the Private Sector decreased by 0.5 percent.
Total Bank Deposits increased by 1.5 percent, rising from AED 1,966.8 billion at the end of November 2021 to AED 1,996.5 billion at the end of December 2021. The rise in Total Bank Deposits was due to increases in both Resident Deposits and Non-Resident Deposits by 1.6 percent and 0.6 percent, respectively. Resident Deposits rose due to 8.4 percent, 2.4 percent and 5.2 percent increases in Public Sector (Government Related Entities) Deposits, Private Sector Deposits and Non-Banking Financial Institutions Deposits, respectively. Government Sector Deposits dropped by 6.6 percent.