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UAE Central Bank issues monetary, banking developments for May 2021
14 Jul, 2021 / 10:31 AM / OMNES Media LLC

Source: http://khaleejtimes.com/

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The Central Bank of the UAE has announced that the Money Supply aggregate M1 increased by 0.3 per cent, from Dh644.4 billion at the end of April 2021 to Dh646.4 billion at the end of May 2021, according to monetary and banking developments for May 2021.

 
The Money Supply aggregate M2 decreased by 0.3 per cent, from Dh1462.5 billion at the end of April 2021 to Dh1458.5 billion at the end of May 2021.

The Money Supply aggregate M3 also reduced by 0.8 per cent, falling from Dh1764.8 billion at the end of April 2021 to Dh1750.2 billion at the end of May 2021.

The increase in M1 was due to Dh2.4 billion rise in Monetary Deposits, overshadowing Dh0.4 billion fall in Currency in Circulation Outside Banks. M2 decreased due to a Dh6.0 billion reduction in Quasi-Monetary Deposits, superseding the increase in M1. M3 fell due to a reduced M2 and a Dh10.6 billion reduction in Government Deposits.

The Monetary Base expanded by 2.9 per cent rising from Dh430.8 billion at the end of April 2021 to Dh443.4 billion at the end of May 2021. The main driving force behind this increase in the Monetary Base was 32.7 per cent and 11.1 per cent increases in Reserve Account and Certificates of Deposit & Monetary Bills, respectively. Currency Issued and Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE fell by 1.2 per cent and 28.6 per cent, correspondingly.

Gross banks’ assets, including bankers’ acceptances, rose by 0.4 per cent, increasing from Dh3169.3 billion at the end of April 2021 to Dh3182.0 billion at the end of May 2021.

Gross credit decreased by 0.7 per cent falling from Dh1763.2 billion at the end of April 2021 to Dh1751.5 billion at the end of May 2021. Gross Credit fell because of 0.8 per cent reduction in Domestic Credit, overriding 0.5 per cent increase in Foreign Credit. The fall in Domestic Credit was mainly due to a 1.4 per cent, 2.8 per cent, 0.2 per cent and 0.6 per cent reductions in credit to Government Sector, credit to Public Sector (GREs), credit to Private Sector and credit to Non-Banking Financial Institutions, respectively.

Total bank deposits decreased by 0.1 per cent, falling from Dh1877.3 billion at the end of April 2021 to Dh1874.6 billion at the end of May 2021, attributable to 0.4 per cent reduction in Resident Deposits, overriding a 1.5 per cent rise in Non-Resident Deposits. Resident Deposits fell mainly due to 1.2 per cent, 0.1 per cent, 0.2 per cent and 1.7 per cent reductions in Government Sector Deposits, GREs Deposits, Private Sector deposits and Non-Banking Financial Institutions’ Deposits, respectively.