UAE CB announces M1 increase to Dhs509.7b

29/03/2018 05:37 AST

The Central Bank has announced that the Money Supply aggregate M1 increased by 2.3 per cent, from Dhs498 billion at the end of January 2018 to Dhs509.7 billion at the end of February 2018.

In a statement, the bank said, “The Money Supply aggregate M2 increased by 0.6 per cent, from Dhs1277.2 billion at the end of January 2018 to Dhs1284.9 billion at the end of February 2018.

It added, “The Money Supply aggregate M3 also increased by 0.4 per cent, from Dhs1480.9 billion at the end of January 2018 to Dhs1486.3 billion at the end of February 2018.

“The increase in M1 was mainly due to a rise of Dhs10 billion in Monetary Deposits. The increase in M2 was brought about by the increase in M1, overshadowing an Dhs4 billion reduction in Quasi-Monetary Deposits. M3 mainly rose due to increases in M1 and M2, overshadowing the decrease of Dhs2.3 billion in Government Deposits.

“Gross bank assets, including bankers’ acceptances, increased by 0.7 per cent, rising from Dhs2688.1 billion at the end of January 2018 to Dhs2707 billion at the end of February 2018.

“Gross credit increased by 0.5 per cent from Dhs1587.9 billion at the end of January 2018 to Dhs1596.4 billion at the end of February 2018.

“During February 2018, total bank deposits decreased by Dhs1.4 billion, mainly due to an Dhs3.3 billion reduction in Non-Resident Deposits, overshadowing Dhs1.9 billion increase in Resident Deposits.”

According to the recent Central Bank Bulletin, the total assets of UAE Central Bank rose to Dhs398.6 billion in twelve months until February 2018, up by more than Dhs33.78 billion. The assets were Dhs364.82 billion in the same period of 2017.

The Central Bank’s balance sheet went up by Dhs7 billion in February, from a total of Dhs391.54 billion in January. The growth in Central Bank’s assets is attributed to the increase in banks’ deposits, up by Dhs25.68 billion in annual terms, and by Dhs11.42 in monthly term, leading the total balance to jump to Dhs102.64 billion by the end of February.

The Gulf Today