Bank deposits up 0.7% to Dh1.92 trillion by end of August: CBUAE
The Money Supply aggregate M1 increased by 1.1 per cent, from Dh653.9 billion at the end of July 2021 to Dh 661.1 billion at the end of August 2021.
The Central Bank of the UAE (CBUAE) said on Tuesday that total bank deposits increased by 0.7 per cent, rising from Dh1.91trillion at the end of July 2021 to Dh1.92 trillion at the end of August 2021.
In a statement, the apex bank attributed the rise in total bank deposits to a 0.6 per cent increase in resident deposits and 1.5 per cent increase in non-resident Deposits. Resident Deposits rose due to 4.6 per cent rise in government-related entities (GRE) deposits and 0.6 per cent rise in private sector deposits, superseding reductions in government sector deposits and non-banking financial institutions deposits by 1.0 per cent and 12.1 per cent, respectively.
In the meantime, the bank announced that the Money Supply aggregate M1 increased by 1.1 per cent, from Dh653.9 billion at the end of July 2021 to Dh 661.1 billion at the end of August 2021.
“The money supply aggregate M2 increased by 0.7 per cent, from Dh1.47 trillion at the end of July 2021 to Dh1.48 trillion at the end of August 2021. The Money Supply aggregate M3 also increased by 0.3 per cent, from Dh1.77 trillion at the end of July 2021 to Dh1.78 trillion at the end of August 2021.”
The rise in M1 was due to an Dh9.7 billion increase in monetary deposits, overriding Dh2.5 billion reduction in currency in circulation outside banks. M2 increased due to an increased M1 and an Dh2.7 billion rise in Quasi-Monetary Deposits. M3 rose due to increases in M1 and M2, overshadowing Dh4.2 billion drop in government deposits.
The Monetary Base expanded by 1.8 per cent rising from Dh436.9 billion at the end of July 2021 to Dh444.7 billion at the end of August 2021, added the statement. “The main driving force behind this expansion in the Monetary Base was 68.5 per cent increase in Banks & OFCs’ current accounts and overnight deposits of banks at CBUAE, overshadowing the fall in Currency Issued by 2.6 per cent, in Reserve Account by 16.2 per cent and in certificates of deposit and monetary bills by 1.5 per cent.”
Gross banks’ assets, including bankers’ acceptances, decreased by 0.2 per cent, declining from Dh3.23trillion at the end of July 2021 to Dh3.22 trillion at the end of August 2021, according to the bank’s figures.
“Gross credit increased by 0.2 per cent climbing from Dh1.76 trillion at the end of July 2021 to Dh1.77 trillion at the end of August 2021.” It attributed the gross credit increase to a 0.3 per cent rise in domestic credit, overshadowing the 0.8 per cent fall in foreign credit. The rise in domestic credit was mainly due to 0.6 per cent, 0.3 per cent and an 4.5 per cent increase in credit to the government sector, private sector and non-banking financial institutions respectively, despite the reduction in credit to public sector (GRE) by 0.3 per cent. — Wam
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