UAE Central Bank announces money supply aggregate M1 increase by 3.5%

ABU DHABI: The U.A.E.’s Central Bank has announced that the money supply aggregate M1 (currency in circulation plus monetary deposits, i.e. current accounts and call accounts at banks) increased by 3.5%, from AED 412.0 billion at the end of March 2014 to AED 426.3 billion by the end of April 2014.

In its statement, the Central Bank announced that the money supply aggregate M0 (currency in circulation + currency at banks) decreased by 0.2%, from AED 65.3 billion to AED 65.2 billion for the same period.

The money supply aggregate M2, which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), decreased by 0.1%, from AED 1,124.3 billion at the end of March to AED 1,123.7 billion at the end of April .

The money supply aggregate M3 (M2 plus government deposits at banks operating in the U.A.E. as well as at the Central Bank) increased by 1.0%, from AED 1,280.2 billion to AED 1,293.0 billion.

Total bank deposits increased by 1.0% during April to reach AED 1,345.0 billion, as a result of an increase in resident deposits by AED 8.9 billion and a increase in non-resident deposits by AED 4.4 billion.

Total bank loans and advances (gross basis) increased by 0.6% during the month of April to reach AED 1,311.4 billion, while total bank assets (gross basis) decreased by 0.2% to reach AED 2,175.7 billion, during the same period.

The Central bank also announced that from February 2014, data on total bank loans and advances and total bank assets is presented on a “gross basis” instead of the previous practice of presenting them on a “net of provisions basis”.

SOURCE: WAM