Abu Dhabi, UAE – The Central Bank of the UAE (CBUAE) announced on Tuesday that the Money Supply aggregate M1 increased by 2.1 percent, from AED 759.3 billion ($206.47 billion) at the end of March 2023 to AED 775.2 billion ($210.68 billion) at the end of April 2023. This was due to AED 3.3 billion ($895.42 million) and AED 12.6 billion ($3.42 billion) increases in Currency in Circulation Outside Banks and Monetary Deposits, respectively.
The Money Supply aggregate M2 climbed by 2.0 percent, from AED 1,788.4 billion ($485.57 billion) at the end of March 2023 to AED 1,823.7 billion ($495.47 billion) at the end of April 2023. M2 rose due to an elevated M1, and an AED 19.4 billion ($5.27 billion) rise in Quasi-Monetary Deposits.
The Money Supply aggregate M3 also soared by 2.2 percent, from AED 2,195.9 billion ($596.33 billion) at the end of March 2023 to AED 2,245.1 billion ($609.46 billion) at the end of April 2023. M3 increased because of a raised M2 and an AED 13.9 billion ($3.78 billion) rise in Government Deposits.
The Monetary Base grew by 5.6 percent, climbing from AED 568.9 billion ($154.56 billion) at the end of March 2023 to AED 600.7 billion ($163.17 billion) at the end of April 2023. The main drivers of this expansion of the Monetary Base were increases in Currency Issued, Reserve Account and Monetary Bills & Islamic Certificates of Deposit by 3.0 percent, 98.6 percent, and 3.2 percent, respectively, overriding the 49.1 percent reduction in Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE.
Gross banks’ assets, including bankers’ acceptances, rose by 1.0 percent, from AED 3,764.7 billion ($1,021.17 billion) at the end of March 2023 to AED 3,802.7 billion ($1,031.38 billion) at the end of April 2023.
Gross credit increased by 0.1 percent from AED 1,895.8 billion ($514.89 billion) at the end of March 2023 to AED 1,897.0 billion ($515.33 billion) at the end of April 2023. Gross Credit rose due to 0.4 percent growth in Domestic Credit, overriding a 2.3 percent fall in Foreign Credit.
Domestic Credit expanded because of 0.8 percent and 0.5 percent increases in credit to the Public Sector (Government Related Entities) and Private Sector, respectively. Whereas, credit to the Government Sector and Non-Banking Financial Institutions declined by 0.4 percent and 4.7 percent, respectively.
Total Bank Deposits increased by 1.9 percent, rising from AED 2,306.0 billion ($626.47 billion) at the end of March 2023 to AED 2,350.9 billion ($638.73 billion) at the end of April 2023. The growth in Total Bank Deposits was due to increases in Resident Deposits by 2.1 percent and Non-Resident Deposits by 0.9 percent.
Resident Deposits rose owing to increases in Government Sector, Public Sector (Government Related Entities) and Private Sector Deposits by 2.7 percent, 9.3 percent and 1.4 percent, respectively. Non-Banking Financial Institutions’ Deposits fell by 16.4 percent.
