Central Bank UAE issues monetary and banking developments

ABU DHABI (WAM)


The Central Bank announced that the Money Supply aggregate M1 decreased by 0.2 percent, from Dh799.3 billion at the end of October 2023 to Dh797.4 billion at the end of November 2023.

This was due to Dh4.9 billion fall in Monetary Deposits. Currency in Circulation Outside Banks increased by Dh3 billion during November 2023.

The Money Supply aggregate M2 rose by 0.7 percent, from Dh1,922.3 billion at the end of October 2023 to Dh1,935.4 billion at the end of November 2023. M2 rose due to Dh15 billion rise in Quasi-Monetary Deposits, overriding the diminished M1.

The Money Supply aggregate M3 also increased by 0.5 percent, from Dh2,376.7 billion at the end of October 2023 to Dh2,388.6 billion at the end of November 2023. M3 Increased because of an augmented M2, overshadowing the Dh1.2 billion reduction in Government Deposits.

The Monetary Base expanded by 2.9 percent, from Dh596.9 billion at the end of October 2023 to Dh614 billion at the end of November 2023. The main driver of this increase in the Monetary Base was the rise in Currency Issued by 3.5 percent, in Banks OFCs’ Current Accounts Overnight Deposits of Banks at CBUAE by 19.1 percent and in Monetary Bills Islamic Certificates of Deposit by 1.1 percent.

Gross banks’ assets, including bankers’ acceptances, rose by 0.8 percent, from Dh3,995.7 billion at the end of October 2023 to Dh4,026.0 billion at the end of November 2023.

Gross credit increased by 1.0 percent from Dh1,974.2 billion at the end of October 2023 to Dh1,994.5 billion at the end of November 2023. Gross Credit rose due to rises in Domestic Credit by 0.8 percent and in Foreign Credit by 2.8 percent.

Domestic Credit grew because of 5.0 percent, 2.0 percent and 6.0 percent increases in credit to the Public Sector (Government Related Entities), Private Sector and to Non-Banking Financial Institutions, respectively.

Total Bank Deposits fell by 0.5 percent, reducing from Dh2,455.4 billion at the end of October 2023 to Dh2,444.3 billion at the end of November 2023. The decline in Total Bank Deposits was due to a decrease in Non-Resident Deposits by 9.3 percent, superseding an increase of 0.4 percent in Resident Deposits.

Resident Deposits rose owing to increase in Private Sector Deposits by 1.9 percent. While, Government Sector deposits and Public Sector (Government Related Entities) Deposits fell by 0.5 percent and 7.9 percent, respectively and Non-Banking Financial Institutions Deposits remained constant.