KHALEEJ TIMES, Saturday, Jan 08, 2022 | Jamada Al-Aakhirah 5, 1443
M1 increased to Dh686b at end of November 2021: Central Bank
Emirates:
The Central Bank announced that the Money Supply aggregate M1 increased
by 2.1 per cent, from Dh671.6 billion at the end of October 2021 to Dh686.0
billion at the end of November 2021.
The Money Supply aggregate M2 increased by 1.3 per cent, from Dh1,498.3 billion
at the end of October 2021 to Dh1,517.1 billion at the end of November 2021.
The Money Supply aggregate M3 also increased by 0.6 per cent, from Dh1,819.6
billion at the end of October 2021 to Dh1,830.1 billion at the end of November
2021.
The rise in M1 was due to Dh0.6 billion increase in Currency in Circulation
Outside Banks and Dh13.8 billion increase in Monetary Deposits. M2 increased due
to an elevated M1 and Dh4.4 billion rise in Quasi-Monetary Deposits. M3 rose due
to increased M1 and M2, overshadowing Dh8.3 billion fall in Government Deposits.
The Monetary Base expanded by 1.5 per cent rising from Dh455.1 billion at the
end of October 2021 to Dh461.7 billion at the end of November 2021. The main
driving force behind this expansion in the Monetary Base was 2.6 per cent and
9.8 per cent increase in Currency Issued and Certificates of Deposit & Monetary
Bills, respectively. Whereas, Reserve Account and Banks & OFCs’ Current Accounts
& Overnight Deposits of Banks at CBUAE reduced by 5.4 per cent and 8.1 per cent,
respectively.
Gross banks’ assets, including bankers’ acceptances, increased by 0.8 per cent,
rising from Dh3,271.2 billion at the end of October 2021 to Dh3,295.8 billion at
the end of November 2021.
Gross credit increased by 1.4 per cent rising from Dh1,763.0 billion at the end
of October 2021 to Dh1,788.3 billion at the end of November 2021. Gross Credit
rose because of 1.7 per cent increase in Domestic Credit, superseding 1.4 per
cent decrease in Foreign Credit. The growth in Domestic Credit was mainly due to
increases by 8.5 per cent, 0.9 per cent and 4.0 per cent in Credit to Public
Sector (Government Related Entities), Private Sector and Non-Banking Financial
Institutions, respectively. While Credit to the Government Sector decreased by
0.6 per cent.
Total Bank Deposits decreased marginally by 0.03 per cent, falling from
Dh1,967.3 billion at the end of October 2021 to Dh1,966.8 billion at the end of
November 2021. The drop in Total Bank Deposits was due to 3.9 per cent reduction
in Non-Resident Deposits, overriding 0.5 per cent increase in Resident Deposits.
Resident Deposits rose due to 0.7 per cent, 0.9 per cent and 2.5 per cent rise
in Public Sector (Government Related Entities) Deposits, Private Sector Deposits
and Non-Banking Financial Institutions Deposits, respectively. Government Sector
Deposits fell by 1.5 per cent.