The Central Bank of the UAE (CBUAE) reported that money supply aggregate M1 rose 1.0% to Dh1.02 trillion at the end of June, up from Dh1.01 trillion at the end of May, driven by Dh1.7 billion in additional currency in circulation outside banks and Dh8.9 billion in increased monetary deposits.
M2 rose 2.3% to Dh2.53 trillion, supported by the elevated M1 and a Dh46.6 billion increase in quasi-monetary deposits.
M3 climbed 1.7 to Dh2.9 trillion, as the M2 gain outweighed a Dh7.7 billion decline in government deposits.
The monetary base increased 2.8%, to Dh860 billion. That rise was led by a 6.8% increase in the reserve account and a 61.2% jump in banks’ and OFCs’ current and overnight deposits at the central bank, offsetting declines in issued currency (down 0.4%) and monetary bills and Islamic certificates (down 14.0%).
Gross banks’ assets rose 1.9% to Dh4.97 trillion, up from Dh4.87 trillion. Gross credit increased 1.8% to Dh2.33 trillion, with Dh22.5 billion in domestic credit growth (driven by a 2.1% increase to the private sector and 4.6% to non-bank financial institutions) and Dh18.4 billion in foreign credit. Credit to the government sector fell 0.4%, and to government-related entities by 2.3%.
Deposits trend higher
Banks’ total deposits rose 0.9% to Dh3.04 trillion. Resident deposits grew 1.7% to Dh2.78 trillion, while non-resident deposits fell 7.2% to Dh257.2 billion. Within resident deposits, private sector deposits rose 1.7%, deposits by government-related entities rose 2.3%, and non-banking financial institutions posted a 26.7% increase; government sector deposits declined 1.6%.
