Monetary & Banking Developments – August 2018

Dubai, UAE, October 07, 2018:  The Central Bank announced that the Money Supply aggregate M1 decreased by 1.7%, from AED 496.4 billion at the end of July 2018 to AED 488.1 billion at the end of August 2018. 

 

The Money Supply aggregate M2 also decreased by 1.8%, from AED 1302.3 billion at the end of July 2018 2018 to AED 1278.9 billion at the end of August 2018. 

 

On the other hand, the Money Supply aggregate M3 increased by 0.1%, from AED 1556 billion at the end of July 2018 to AED 1556.9 billion at the end of August 2018. 

 

The reduction in M1 was mainly due to a decrease of AED 7.4 billion in Monetary Deposits and of AED 0.9 billion in Currency in Circulation outside Banks. The fall in M2 was brought about by the decreased M1 and an AED 15.1 billion reduction in Quasi-Monetary Deposits. M3 rose due to an AED 24.3 billion increase in Government Deposits, overshadowing the decreases in M1 and M2. 

 

Gross bank assets, including bankers’ acceptances, increased by 0.9%, rising from AED 2774.5 billion at the end of July 2018 to AED 2800.3 billion at the end of August 2018. 

 

Gross credit also increased by 0.6% from AED 1622.9 billion at the end of July 2018 to AED 1632.8 billion at the end of August 2018. 

 

During August 2018, total bank deposits increased by AED 8 billion, due to AED 3.2 billion increase in Resident Deposits and AED 4.8 billion increase in Non-Resident Deposits.