Central bank: Money supply increases to AED 57.2 billion

Central Bank announced that money supply M0 (currency in circulation + currency at banks) increased by 4.4% from AED 54.8 billion at the end of September 2012 to AED 57.2 billion at the end of October 2012. The Central Bank in a statement today siad, the Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 1.4%, from AED 289.8 billion at the end of September 2012 to AED 293.8 billion at the end of October of the same year. Money supply aggregate M2 which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), decreased by 0.1%, from AED 845.5 billion at the end of September 2012 to AED 844.7 billion at the end of October of the same year. Money supply aggregate, M3 (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) increased by 1.1%, from AED 1,068.1 billion at the end of September to AED 1,079.7 billion at the end of October of the same year. Total bank deposits increased by 1.6% during the month of October 2012 to close at AED 1,162.3 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) remained at the same level reached at the end of September, i.e., AED 1,103.2 billion, while total bank assets decreased by 0.1% to reach AED 1,762.9 billion, at the end of October 2012. During the first 10 months of 2012, intermediary monetary aggregate M2 increased by 2.3%, hile bank loans and advances increased by 3.0% and total bank deposits increased by 8.7%.