Money supply M1 jumps to Dh289.8b at end-Sept

The UAE Central Bank announced that money supply aggregate M1 — currency in circulation plus monetary deposits, such as current accounts and call accounts at banks — increased by 1.7 per cent, from Dh285 billion at the end of August to Dh289.8 billion at the end of September. The Central Bank also said in Tuesday’s statement that money supply M0 — currency in circulation plus currency at banks — decreased by 1.6 per cent from Dh55.7 billion at the end of August to Dh54.8 billion at the end of September. It added that money supply aggregate M2, comprising M1 and quasi-monetary deposits — resident time and savings deposits in dirhams, commercial prepayments in dirhams and resident deposits in foreign currencies — increased by 1.3 per cent, from Dh835 billion at the end of August to Dh845.5 billion at the end of September. Money supply aggregate M3 — M2 plus government deposits at banks operating in the UAE as well as at the Central Bank — increased by 1.8 per cent from Dh1,048.8 billion at the end of August to Dh1,068.1 billion at the end of September. Total bank deposits increased by 1.5 per cent during September to close at Dh1,143.8 billion. Total bank loans and advances — net of provisions and interest in suspense — increased by 1.2 per cent to reach Dh1,103.2 billion, and total bank assets increased by 1.7 per cent to reach AED 1,763.9 billion at the end of September. During the first nine months of 2012, intermediary monetary aggregate M2 increased by 2.4 per cent, bank loans and advances jumped three per cent and bank deposits were up 6.9 per cent.