Summary Report: Monetary & Banking Developments – December 2018

Dubai, UAE, January 26, 2019:  The Central Bank announced that the Money Supply aggregate M1 increased by 1.3%, from AED 479.5 billion at the end of November 2018 to AED 485.6 billion at the end of December 2018. 

The Money Supply aggregate M2 increased by 1.6%, from AED 1288.4 billion at the end of November 2018 to AED 1308.4 billion at the end of December 2018. 

Consequently, the Money Supply aggregate M3 also increased by 0.6%, from AED 1593.5 billion at the end of November 2018 to AED 1602.3 billion at the end of December 2018. 

The increase in M1 was mainly due to an increase of AED 6.2 billion in Monetary Deposits, overshadowing  an AED 0.1 billion reduction in Currency in Circulation outside Banks. The rise in M2 was brought about by the increase in M1 and an AED 13.9 billion increase in Quasi-Monetary Deposits. M3 mainly rose due to increased M1 and M2, overriding an AED 11.2 billion decrease in Government Deposits. 

Gross bank assets, including bankers’ acceptances, increased by 0.8%, rising from AED 2854.3 billion at the end of November 2018 to AED 2878 billion at the end of December 2018. 
 
Gross credit also increased by 0.2% from AED 1653.5 billion at the end of November 2018 to AED 1656.6 billion at the end of December 2018. 
During December 2018, total bank deposits increased by AED 16.8 billion, due to AED 6.7 billion and AED 10.1 billion increases in Resident Deposits and Non-Resident Deposits, respectively.