The Central Bank of the UAE has announced that the Money Supply aggregate M0 (Currency in Circulation + Cash at Banks) increased by 1. 4%, from AED 73.5 billion at the end of November to AED 74.5 billion at the end of December2014.
However, the Money Supply aggregate M1 (Currency in Circulation plus Monetary Deposits1 ) decreased by 0.8%, from AED 441.9 billion at the end of November to AED 438.5billion at the end of December 2014. This reduction was a result of 2.6% and 1.7% decrease in Currency in Circulation and Monetary Deposits which accounted for13.5% and 86.5% respectively, of total M1.
The Money Supply aggregate M2, which comprises M1 and Quasi-Monetary deposits2 ,increased by 0.1%, from AED 1140.1 billion at the end of November to AED 1414.4 billion at the end of December2014. The increase in M2was attributed to 0.6% rise in Quasi-Monetary Deposits which accounted for 61.6% of total M2, overshadowing the 2.6% and 0.5% decrease in Currency in Circulation and Monetary Deposits that accounted for 5.2% and 33.3% respectively of total M2.
The Money Supply aggregate M3 (M2 plus Government Deposits3 ) also decreased by 1.9%, from AED 1357.8 billion at the end of November to AED 1332 billion at the end of December 2014. This reduction was brought about by 12.3% reduction in Government Deposits that dominated the increase in M2.
Gross bank assets, including bankers’ acceptances, decreased by 0.8%, during the month of December 2014, falling from AED 2342.6 billion at the end of November to AED 2323 billion at the end of December 2014. Similarly, gross bank loans and advances decreased by 0.1%, dropping from AED 1397.9 billion at the end of November to AED 1396.2 billion at the end of December 2014.
Total bank deposits decreased by AED 4.7 billion during the month of December 2014, falling to AED 1421.3 billion. This was a result of AED 22.8 billion decrease in resident deposits, which accounted for89.2% of total bank deposits, overriding an increase of AED 18.1 billion in nonresident deposits, which accounted for 10.8% of total bank deposits in December 2014.
As of February 2014, data on total bank loans & advances and total bank assets are presented on “gross basis” instead of the previous practice of presenting them on “net of provisions” basis.
In addition, as of April 2014, bankers’ acceptances have also been included in total bank assets.
1Monetary Deposits: current accounts and call accounts at banks.
2Quasi-monetary Deposits: resident time and saving deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies.
3Government Deposits at banks operating in the UAE as well as at the Central Bank.
Source : WAM News Agency for United Arab Emirates
