UAE gross banks’ assets, including bankers’ acceptances, increased by 1.0% month-on-month, reaching Dh4,296.5 billion at the end of April 2024, compared to Dh4,254.5 billion at the end of March 2024, according to the Monetary & Banking Developments issued by the Central Bank of the UAE (CBUAE) today.
Gross credit grew by 0.8% to Dh2,063.1 billion at the end of April 2024, driven by the increase in domestic and foreign credit, which grew 0.7% and 1.4%, respectively. The growth in the credit provided to the government and private sectors (4.7% and 0.4%) served to offset the 0.5%, and 3.8% decrease in credit to the public sector and non-banking financial institutions.
Meanwhile, aggregate bank deposits increased by 2.3% to Dh2,717.5 billion at the end of April 2024. The increase in total bank deposits was due to the growth in resident deposits by 2.7%, offsetting the decline in non-resident deposits by 2.9%.
The Central Bank announced that the money supply aggregate M1 increased by 1.6% from Dh878.1 billion at the end of March to Dh892.4 billion at the end of April. This was due to Dh1.2 billion rise in currency in circulation outside banks, combined with a Dh13.1 billion increase in monetary deposits.
The money supply aggregate M2 increased by 0.6% to Dh2,148.5 billion, while the money supply aggregate M3 increased by 2.8%, to reach Dh2,657.3 billion at the end of April 2024. M3 increased mainly because of an amplified M2, combined with an increase of Dh59.9 billion in government deposits.
The monetary base expanded by 1.5% from Dh703.7 billion in March 2024 to Dh714.3 billion at the end of April, driven by growth in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 72%, overshadowing the decline in currency issued by 0.1%, reserve account by 16.9% and monetary bills & Islamic certificates of deposit by 1.6%.
