UAE Central Bank announces money supply in banks

UAE Central Bank announced that money supply M0 (currency in circulation + currency at banks) increased by 1.9% from AED 56.7 billion at the end of November 2012 to AED 57.8 billion at the end of December 2012. Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased also by 1.9%, from AED 293.6 billion at the end of November 2012 to AED 299.2 billion at the end of December 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 0.6%, from AED 867.5 billion at the end of November 2012 to AED 862.4 billion at the end of December 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) decreased by 1.3% from AED 1,097.4 billion at the end of November to AED 1,083.1 billion at the end of December of the same year. Total bank deposits decreased by 1.3% during the month of December 2012 to close at AED 1,167.8 billion, as a result of a decrease in both resident deposits and non-resident deposits by 1.3% and 0.8%, respectively. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) decreased by 0.7% to reach AED 1,099.1 billion. Also, total bank assets decreased by 0.2% to reach AED 1,791.6 billion, at the end of December 2012. During the year 2012, Monetary aggregate M2 increased by 4.4%, , while bank loans and advances increased by 2.6% and total bank deposits increased by 9.2%, as a result of an increase in non-resident deposits by 8.0% and an increase in resident deposits by 19.3%; marresident deposits represented 88.5% of total deposits, at the end of December 2012.