Money Supply aggregate M1 rises
ABU DHABI: The Central Bank of the UAE announced that the Money Supply aggregate M1 increased by 0.3%, from Dhs 644.4 billion at the end of April 2021 to Dhs 646.4 billion at the end of May 2021, according to monetary and banking developments for May 2021
The Money Supply aggregate M2 decreased by 0.3%, from Dhs 1462.5 billion at the end of April 2021 to Dhs 1458.5 billion at the end of May 2021.
The Money Supply aggregate M3 also reduced by 0.8%, falling from Dhs 1764.8 billion at the end of April 2021 to Dhs 1750.2 billion at the end of May 2021.
The increase in M1 was due to Dhs 2.4 billion rise in Monetary Deposits, overshadowing Dhs 0.4 billion fall in Currency in Circulation Outside Banks. M2 decreased due to an Dhs 6.0 billion reduction in Quasi-monetary Deposits, superseding the increase in M1. M3 fell due to a reduced M2 and an Dhs 10.6 billion reduction in Government Deposits.
The Monetary Base expanded by 2.9 % rising from Dhs 430.8 billion at the end of April 2021 to Dhs 443.4 billion at the end of May 2021. The main driving force behind this increase in the Monetary Base was 32.7% and 11.1% increases in Reserve Account and Certificates of Deposit & Monetary Bills, respectively. Currency Issued and Banks & OFCS’ Current Accounts & Overnight Deposits of Banks at CBUAE fell by 1.2% and 28.6%, correspondingly.
Gross banks’ assets, including bankers’ acceptances, rose by 0.4%, increasing from Dhs3169.3 billion at the end of April 2021 to Dhs 3182.0 billion at the end of May 2021.
Gross credit decreased by 0.7% falling from Dhs 1763.2 billion at the end of April 2021 to Dhs 1751.5 billion at the end of May 2021. Gross Credit fell because of 0.8% reduction in Domestic Credit, overriding 0.5% increase in Foreign Credit. The fall in Domestic Credit was mainly due to a 1.4%, 2.8%, 0.2% and 0.6% reductions in credit to Government Sector, credit to Public Sector (GRES), credit to Private Sector and credit to Non-banking Financial Institutions, respectively.