Total bank deposits up by 0.3%
ABU DHABI: The Central Bank of the UAE said that total bank deposits increased by 0.3%, climbing from Dhs1,982.4 billion at the end of January 2022 to Dhs1,988.2 billion at the end of February 2022.
“The rise in total bank deposits was due to growth in Resident Deposits by 0.5%, overshadowing the reduction in Non-resident Deposits by 1.4%. Resident Deposits rose due to 1.7%, 1.4% and 8.9% appreciation in Government Sector Deposits, Private Sector Deposits and Non-banking Financial Institutions Deposits, respectively. Public Sector (Government Related Entities) Deposits fell by 6.4%,” the apex bank said in its Monetary & Banking Developments Report for February 2022.
The Money Supply aggregate M1 increased by 0.8%, from Dhs706.5 billion at the end of January 2022 to Dhs712.1 billion at the end of February 2022, the CBUAE added.
The Money Supply aggregate M2 grew by 0.4%, from Dhs1,563.4 billion at the end of January 2022 to Dhs1,570.3 billion at the end of February 2022.
The Money Supply aggregate M3 also increased by 0.6%, from Dhs1,856.6 billion at the end of January 2022 to Dhs1,867.8 billion at the end of February 2022.
“The rise in M1 was due to Dhs3.3 billion surge in Currency in Circulation Outside Banks and Dhs2.3 billion rise in Monetary Deposits. M2 increased due to an elevated M1 combined with Dhs1.3 billion increase in Quasi-monetary Deposits. M3 grew due to increased M1 and M2 accompanied by Dhs4.3 billion ascent in Government Deposits,” explained the report.
The Monetary Base expanded, the report continued, “by 1.1% rising from Dhs481.2 billion at the end of January 2022 to Dhs486.7 billion at the end of February 2022. The main drivers of this expansion in the Monetary Base were increases in Currency Issued by 2.3%, Reserve Account by 21.0% and Certificates of Deposit & Monetary Bills by 3.7%. Whereas, Banks & OFCS’ Current Accounts & Overnight Deposits of Banks at CBUAE fell by 18.3%.