Central Bank announces Monetary and Banking developments for June 2016

The Central Bank of the UAE has announced that the Money Supply aggregate, M1, decreased by 1.6%, from AED 488.9 billion at the end of May 2016 to AED 481 billion at the end of June.

The Money Supply aggregate M2 decreased by 0.5%, from AED 1186.4 billion at the end of May 2016 to AED 1180.4 billion at the end of June.

The Money Supply aggregate M3 also decreased by 0.5%, from AED 1371.3 billion at the end of May 2016 to AED 1364.8 billion at the end of June.

The reduction in M1 was mainly due to a decrease of AED 9.3 billion in Monetary Deposits. The decrease in M2 was mainly attributed to a reduced M1, which overshadowed an AED 1.9 billion increase in Quasi-Monetary Deposits. M3 too decreased owing to reduced M1 and M2 and an AED 0.5 billion reduction in Government Deposits.

Gross bank assets, including bankers’ acceptances, increased by 0.5%, increasing from AED 2506.1 billion at the end of May 2016 to AED 2518.5 billion at the end of June. Gross credit also increased by 0.8%, rising from AED 1531.8 billion at the end of May 2016 to AED 1543.4 billion at the end of June.

During June 2016, total bank deposits decreased by AED 12.5 billion due to AED 7.0 billion and AED 5.5 billion decreases in Resident Deposits and Non-Resident Deposits, respectively.

Source :WAM