Money supply aggregate increases to AED474.4b in February

The Central Bank announced that the Money Supply aggregate M1 increased by 0.2%, from AED 473.5 bn at the end of January 2016 to AED 474.4 bn at the end of February 2016.

Money Supply aggregate M2 remained constant at AED 1,212.5 bn at the end of February 2016.

Money Supply aggregate M3 increased by 0.02%, from AED 1,371.6 bn at the end of January 2016 to AED 1,371.9 bn at the end of February 2016.

The increase in M1 was mainly attributed to an increase of AED 2 bn in Currency in Circulation Outside Banks. The AED 0.9 bn decrease in Quasi-Monetary Deposits was offset by the increased M1, keeping M2 constant. The increase in M3 was largely attributed to an AED 0.3 bn increase in Government Deposits.

Gross bank assets, including bankers’ acceptances, decreased by 0.7%, from AED 2480.4 bn at the end of January 2016 to AED 2462.2 bn at the end of February 2016.

Gross credit increased by 0.8%, rising from AED 1491.9 bn at the end of end of January to AED 1503.7 bn at the end of February 2016.

During February 2016, total bank deposits remained constant at AED 1471.1 bn. The AED 0.6 bn decrease in Resident Deposits nullified the AED 0.6 bn increase in Non-Resident Deposits.

Note: M1 = Currency in circulation outside Banks + Monetary Deposits (current accounts and call accounts at banks) M2 = M1 + Quasi-monetary Deposits (resident time and saving deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies) M3 = M2 + Government Deposits at banks operating in the UAE as well as at the Central Bank.