Today's Edition
ABU DHABI (WAM)
The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 2.3%, from Dh 924.8 billion at the end of November 2024 to Dh 946.4 billion at the end of December 2024. The increase was brought about by Dh 1.1 billion growth in currency in circulation outside banks and Dh 20.6 billion increase in monetary deposits.
The money supply aggregate M2 increased by 1.7%,increasing from Dh 2,278.9 billion at the end of November 2024 to Dh 2,317.5 billion at the end of December 2024. M2 increased because of an elevated M1, and Dh 17.0 billion increase in Quasi-Monetary Deposits.
According to the Monetary & Banking Developments for December 2024, issued by the apex bank today, the money supply aggregate M3 also increased by 0.4%, from Dh 2,767.4 billion at the end of November 2024 to Dh 2,778.9 billion at the end of December 2024. M3 increased mainly due to the growth in M2, overriding Dh 27.1 billion decrease in government deposits.
The monetary base increased by 4.4%, from Dh 748.0 billion at the end of November 2024 to Dh 780.6 billion at the end of December 2024. The growth in the monetary base was driven by an increase of 0.1% in currency issued, 0.6% in reserve account, 23.7% in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE and 4.1% in monetary bills & Islamic certificates of deposit.
Gross banks’ assets, including bankers’ acceptances, increased by 2.4% from Dh 4,451.4 billion at the end of November 2024 to Dh 4,560.0 billion at the end of December 2024.
Gross credit also increased by 0.8% from Dh 2,163.4 billion at the end of November 2024 to Dh 2,181.1 billion at the end of December 2024. Gross credit increased due to an increase in foreign credit by 8.3%, overshadowing the decrease in domestic credit by 0.4%.
Domestic credit declined due to decreases in credit to the public sector (government-related entities) by 2.5%, private sector by 0.2% and non-banking financial institutions by 2.5%. Whereas, credit to the government sector increased by 1.6%.
Banks’ deposits increased by 1.5%, from Dh 2,804.4 billion at the end of November 2024 to Dh 2,847.0 billion at the end of December 2024. The growth in bank deposits was due to increases in resident deposits by 0.5% and non-resident deposits by 13.9%.
Resident deposits grew as a result of increases in government-related entities deposits by 4.2%, private sector deposits by 0.9% and non-banking financial institutions deposits by 16.5%, overshadowing the decrease in government sector deposits by 5.2%.
