Abu Dhabi, UAE — The Central Bank of the UAE (CBUAE) revealed that total banking assets, including bank acceptance certificates, rose to AED 4.31 trillion ($1.16 trillion) at the end of June, a month-on-month increase of 0.5 percent, compared to AED 4.28 trillion in May 2024.
In a report entitled “Monetary and Banking Developments for June 2024”, the CBE added that total credit increased by 1.1 percent to AED 2.101 trillion at the end of June, compared to AED 2.078 trillion at the end of May, as a result of the increase in domestic credit by 0.8 percent and the increase in foreign credit by 2.9 percent.
The CBE attributed the expansion of domestic credit to increases in credit to the public sector and credit to the private sector by 1.4 percent and 1 percent, respectively, offsetting the decline by 1.1 percent and 0.6 percent in credit to the government sector and non-banking financial institutions.
Total bank deposits increased by 0.5 percent to AED 2.692 trillion at the end of June, compared to AED 2.678 trillion at the end of May, driven by an 8.4 percent rise in non-resident deposits, outpacing the decline in resident deposits by 0.1 percent.
The CBE stated that resident deposits decreased as a result of the decline in government deposits by 3 percent and deposits of government-related entities by 0.1 percent, while private sector deposits increased by 0.4 percent, and deposits of non-banking financial institutions by 6.6 percent at the end of June.
– Monetary base.
The monetary base decreased by 0.3 percent from AED 727.1 billion at the end of May to AED 725 billion at the end of June, driven by declines in issued currencies by 2.3 percent, current accounts of banks and other financial institutions and overnight deposits with the Central Bank by 42.2 percent, cash bills and Islamic certificates of deposit by 0.5 percent, while the reserve account recorded an increase of 37.3 percent.
The report pointed out that the total money supply “N1”, which includes cash in circulation outside banks + cash deposits “current accounts and demand accounts with banks”, increased by 0.6 percent from AED 879.2 billion at the end of May to AED 884.1 billion at the end of June, as a result of the increase in cash deposits by AED 7.3 billion, exceeding a decrease of AED 2.4 billion in the value of currency in circulation outside banks.
The report pointed out that the total money supply “N2” – which includes “N1” + quasi-cash deposits, time deposits, savings deposits for residents in dirhams and resident deposits in foreign currencies – increased by 0.5 percent by 0.4 percent to AED 2.169 trillion at the end of June, due to the increase in the money supply “N1” and an increase in quasi-cash deposits by AED 4.2 billion.
The total N3 money supply – which includes N2 + government deposits with banks operating in the UAE as well as with the Central Bank – increased by 0.1 percent to AED 2.632 trillion at the end of June as a result of growth in the N2 money supply.
– Foreign assets.
The total foreign assets of the Central Bank of the UAE exceeded the AED 770 billion barrier at the end of June, for the first time in its history, according to the latest statistics of the bank, as they increased on a monthly basis by 0.5 percent from AED 766.73 billion last May to AED 770.6 billion in June 2024, an increase equivalent to AED 3.88 billion.
The Central Bank’s foreign assets increased year-on-year by 30 percent, compared to AED 592.11 billion in June 2023, an increase equivalent to about AED 178.5 billion in 12 months.
Central Bank statistics attributed the increase in the volume of foreign assets to the increase in bank balances and deposits with banks abroad, to 533.86 billion dirhams, while foreign securities increased to 179.72 billion dirhams, and other foreign assets rose to more than 57 billion dirhams by the end of last June.
The central bank said its foreign assets did not include its reserve tranche status and IMF Special Drawing Rights.
– Central Budget.
The balance sheet of the Central Bank of the UAE reached AED 806.39 billion at the end of June, an increase on an annual basis of 24.2 percent compared to AED 649.4 billion in June 2023, an increase equivalent to AED 157 billion in 12 months.
According to statistics, the Central Bank’s budget was distributed on the assets side by 352.79 billion dirhams for cash and bank balances last June, in addition to investments by about 206.43 billion dirhams, 208.78 billion dirhams for deposits, 1.71 billion dirhams for loans and advances, and 36.68 billion dirhams for other assets.
The balance sheet was distributed on the liabilities and capital side by AED 396.72 billion for current and deposit accounts, about AED 226.93 billion for cash bills and Islamic certificates of deposit, AED 145.36 billion for banknotes and coins issued, AED 26.56 billion for capital and reserves, and AED 10.82 billion for other liabilities.