Monetary and banking developments in UAE

The Central Bank have announced that the money supply aggregate M0 (currency in circulation + currency at banks), increased by 3.8% from AED 60.5 billion at the end of September 2013 to AED 62.8 billion at the end of October of the same year. The money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks), increased by 2.0%, from AED 354.4 billion at the end of September 2013 to AED 361.5 billion at the end of October of the same year. The money supply aggregate M2, which is comprised of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), increased by 5.1% from AED 955.0 billion at the end of September 2013 to AED 1,003.5 billion at the end of October of the same year. The money supply aggregate M3 (M2 plus government deposits at banks operating in the U.A.E. as well as at the Central Bank) increased by 2.0% from AED 1,199.6 billion at the end of September 2013 to AED 1,223.1 billion at the end of October of the same year. Total bank deposits increased by 1.2% during the month of October 2013, reaching AED 1,285.1 billion, as a result of an increase in resident deposits by 2.0%, while total bank loans and advances (net of provisions and interest in suspense) decreased by 1.7% to reach AED 1,157.8 billion, and total bank assets increased by 4.1% to reach AED 1,986.6 billion, at the end of October 2013. During the first ten months of 2013, the monetary aggregate M2 increased by 16.4%, while bank loans and advances increased by 5.3% and total bank deposits increased by 10.0%, as a result of an increase in resident deposits by 13.0%.