Government deposits lift money supply

Money in circulation and short-term deposits recorded a decrease last August, but government deposits make up for shortages, the UAE Central Bank said in its monthly statement, issued yesterday.

Both money in circulation and short-term deposits recorded a decrease of 1.7 per cent and 1.8 per cent respectively during last August.

The money in circulation reached Dh488.1 billion at the end of August due to a decrease of Dh7.4 billion in monetary deposits, and Dh0.9 billion decrease in the amount of money in circulation outside banks, the statement said.

Short-term deposits decreased due to a Dh15.1 billion decrease in deposits, and reached Dh1.27 billion at the end of last August.

However, government deposits of Dh24.3 billion compensated for the decrease in deposits.

Bank assets increase

Long-term deposits increased 0.1 per cent from Dh1.55 billion at the end of July to Dh1.56 billion at the end of August.

The UAE Central Bank statement also said gross bank assets increased 0.9 per cent to Dh2.80 billion.

Gross credit also increased 0.6 per cent to Dh1.63 billion at the end of August.

“Total bank deposits increased by Dh8 billion, due to a Dh3.2 billion increase in Resident Deposits and Dh4.8 billion increase in Non-Resident Deposits,” WAM quoted the Central Bank statement.