The Central Bank said on Friday that the Money Supply aggregate M1 increased by 2.1 percent, from AED 671.6 billion ($182 billion) at the end of October 2021 to AED 686.0 billion at the end of November 2021.
The Money Supply aggregate M2 increased by 1.3 percent, from AED 1,498.3 billion at the end of October 2021 to AED 1,517.1 billion at the end of November 2021.
The Money Supply aggregate M3 also increased by 0.6 percent, from AED 1,819.6 billion at the end of October 2021 to AED 1,830.1 billion at the end of November 2021.
The rise in M1 was due to AED 0.6 billion increase in Currency in Circulation Outside Banks and AED 13.8 billion increase in Monetary Deposits.
M2 increased due to an elevated M1 and AED 4.4 billion rise in Quasi-Monetary Deposits. M3 rose due to increased M1 and M2, overshadowing AED 8.3 billion fall in Government Deposits.
The Monetary Base expanded by 1.5 percent rising from AED 455.1 billion at the end of October 2021 to AED 461.7 billion at the end of November 2021.
The main driving force behind this expansion in the Monetary Base was a 2.6 percent and 9.8 percent increase in Currency Issued and Certificates of Deposit & Monetary Bills, respectively.
Whereas, Reserve Account and Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE reduced by 5.4 percent and 8.1 percent, respectively.
Gross banks’ assets, including bankers’ acceptances, increased by 0.8 percent, rising from AED 3,271.2 billion at the end of October 2021 to AED 3,295.8 billion at the end of November 2021.
Gross credit increased by 1.4 percent rising from AED 1,763.0 billion at the end of October 2021 to AED 1,788.3 billion at the end of November 2021. Gross Credit rose because of a 1.7 percent increase in Domestic Credit, superseding a 1.4 percent decrease in Foreign Credit.
The growth in Domestic Credit was mainly due to increases of 8.5 percent, 0.9 percent and 4.0 percent in Credit to the Public Sector (Government-Related Entities), Private Sector and Non-Banking Financial Institutions, respectively. While Credit to the Government Sector decreased by 0.6 percent.
Total Bank Deposits decreased marginally by 0.03 percent, falling from AED 1,967.3 billion at the end of October 2021 to AED 1,966.8 billion at the end of November 2021.
The drop in Total Bank Deposits was due to a 3.9 percent reduction in Non-Resident Deposits, overriding a 0.5 percent increase in Resident Deposits. Resident Deposits rose due to 0.7 percent, 0.9 percent and 2.5 percent rise in Public Sector (Government-Related Entities) Deposits, Private Sector Deposits and Non-Banking Financial Institutions Deposits, respectively. Government Sector Deposits fell by 1.5 percent.
