Today's Edition
ABU DHABI (WAM)
The Central Bank announced that the money supply aggregate M1 increased by 0.6 percent, from Dh884.1 billion at the end of June 2024 to Dh889.3 billion at the end of July 2024.
This was due to Dh0.2 billion and Dh5.0 billion rise in currency in circulation outside banks and monetary deposits, respectively.
The money supply aggregate M2 increased by 1.7 percent, from Dh2,169.4 billion at the end of June 2024 to Dh2,205.9 billion at the end of July 2024.
M2 increased because of an elevated M1 and Dh31.3 billion growth in Quasi-Monetary Deposits.
The money supply aggregate M3 also increased by 1.7 percent, from Dh2,632.0 billion at the end of June 2024 to Dh2,676.0 billion at the end of July 2024.
M3 expanded due to the growth in M2 and Dh7.5 billion increase in government deposits.
The monetary base decreased by 1.0 percent, from Dh725.0 billion at the end of June 2024 to Dh718.1 billion at the end of July 2024.
The fall in the monetary base was driven by reductions in; currency issued by 0.5 percent and reserve account by 12.0 percent, overriding the increases in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 26.6 percent and monetary bills & Islamic certificates of deposit by 0.04 percent.
Gross banks’ assets, including bankers’ acceptances, increased by 0.9 percent from Dh4,310.2 billion at the end of June 2024 to Dh4,348.6 billion at the end of July 2024.
Gross credit grew by 0.1 percent from Dh2,100.9 billion at the end of June 2024 to Dh2,102.1 billion at the end of July 2024.
Gross credit increased due to an increase in domestic credit by 0.3 percent, superseding the decrease in foreign credit by 1.5 percent.
Domestic credit expansion was due to increases in credit to the government sector and the private sector by 1.2 percent and 0.7 percent, respectively, overriding the decrease in credit to the public sector (government-related entities) by 1.9 percent and the non-banking financial institutions by 1.2 percent.
Banks’ deposits increased by 1.6 percent, from Dh2,692.5 billion at the end of June 2024 to Dh2,736.0 billion at the end of July 2024.
The growth in total bank deposits was the result of the combined rise in resident deposits by 1.5 percent and in the non-resident deposits by 2.4 percent.
Resident deposits grew as a result of increases in; government sector deposits by 0.6 percent, in government related entities deposits by 10.6 percent and in private sector deposits by 0.6 percent.
Whereas, non-banking financial institutions deposits fell by 1.0 percent, at the end of July 2024.
