Central Bank announces M3 increases to AED 1,348.3 billion at the end of October

ABU DHABI: The Central Bank has announced that the money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) increased by 0.3%, from AED 1,344.2 billion at the end of September to AED 1,348.3 billion at the end of October due to an increase in government deposits (16.5% of total) by 7.0% The money supply aggregate M0, currency in circulation (81.4% of total) + cash at banks (18.6% of total), decreased by 1.1%, from AED 70.8 billion at the end of September 2014 to AED 70.0 billion at the end of October of the same year.

The money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 0.9%, from AED 431.1 billion at the end of September 2014 to AED 435.0 billion at the end of October of the same year, as a result of an increase in monetary deposits (86.9% of total) by 1.1% which was offset by a decrease in currency in circulation (13.1% of total) by 0.5%.

The money supply aggregate M2 which comprises M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), decreased by 0.9%, from AED 1,136.1 billion at the end of September 2014 to AED 1,125.6 billion at the end of October of the same year, due to a decrease in quasi-monetary deposits (61.4% of total) by 2.0%.

Total bank assets (on a gross basis and including bankers’ acceptances) decreased by 0.7%, during the month of October, reaching AED 2,295.2 billion, and total bank loans and advances (on a gross basis) decreased by 0.4%, reaching AED 1,376.6 billion.

Total bank deposits increased by AED 0.5 billion during the month of October, reaching AED 1,415.0 billion, as a result of an increase in resident deposits (90.8 percent of total) by AED 2.4 billion and a decrease in non-resident deposits (9.2 percent of total) by AED 1.9 billion.

Since February 2014, data on total bank loans and advances and total bank assets have been presented on a “gross basis” instead of the previous practice of presenting them on a “net of provisions basis”. In addition, starting April 2014, bankers’ acceptances are included in total bank assets.

SOURCE: WAM