emirates7 - The Central Bank of the UAE (CBUAE) reported a 0.7% rise in gross banks’ assets, including bankers’ acceptances, which grew from AED 4,348.6 billion at the end of July 2024 to AED 4,378.0 billion by the end of August 2024.
According to the Monetary and Banking Developments report for August 2024, gross credit saw a 0.5% increase, reaching AED 2,112.9 billion compared to AED 2,102.1 billion in July. This growth was attributed to a 0.5% rise in domestic credit and a 0.8% increase in foreign credit. The expansion in domestic credit was primarily driven by an 0.8% increase in credit to the private sector, which outweighed reductions in credit to public sector government-related entities (down by 0.3%) and non-banking financial institutions (down by 3.0%). Credit to the government sector remained stable during the month.
Bank deposits also rose slightly, increasing by 0.2% from AED 2,736.0 billion in July to AED 2,740.5 billion in August. The growth in deposits was due to a 0.8% rise in resident deposits, which offset a 6.4% decline in non-resident deposits. Within resident deposits, increases were observed in the government sector (up by 2.6%), private sector (up by 1.2%), and non-banking financial institutions (up by 4.2%). However, deposits from government-related entities fell by 5.9%.
The money supply aggregate M1 decreased by 0.1%, dropping from AED 889.3 billion in July to AED 888.0 billion in August. This decline was mainly due to a AED 0.9 billion reduction in currency in circulation outside banks and a AED 0.4 billion decrease in monetary deposits. In contrast, the money supply aggregate M2 increased by 0.2%, reaching AED 2,211.1 billion, driven by a AED 6.5 billion rise in quasi-monetary deposits, which offset the decline in M1.
Similarly, the money supply aggregate M3 rose by 0.8%, from AED 2,676.0 billion in July to AED 2,696.3 billion in August. The increase in M3 was attributed to the growth in M2 and an additional AED 15.1 billion in government deposits.
The monetary base expanded by 2.3%, growing from AED 718.1 billion in July to AED 734.9 billion in August. This expansion was fueled by increases in currency issued (up by 0.6%), reserve accounts (up by 6.2%), and monetary bills & Islamic certificates of deposit (up by 6.1%), despite a 10.2% decline in banks and OFCs’ current accounts and overnight deposits at the CBUAE.
According to the Monetary and Banking Developments report for August 2024, gross credit saw a 0.5% increase, reaching AED 2,112.9 billion compared to AED 2,102.1 billion in July. This growth was attributed to a 0.5% rise in domestic credit and a 0.8% increase in foreign credit. The expansion in domestic credit was primarily driven by an 0.8% increase in credit to the private sector, which outweighed reductions in credit to public sector government-related entities (down by 0.3%) and non-banking financial institutions (down by 3.0%). Credit to the government sector remained stable during the month.
Bank deposits also rose slightly, increasing by 0.2% from AED 2,736.0 billion in July to AED 2,740.5 billion in August. The growth in deposits was due to a 0.8% rise in resident deposits, which offset a 6.4% decline in non-resident deposits. Within resident deposits, increases were observed in the government sector (up by 2.6%), private sector (up by 1.2%), and non-banking financial institutions (up by 4.2%). However, deposits from government-related entities fell by 5.9%.
The money supply aggregate M1 decreased by 0.1%, dropping from AED 889.3 billion in July to AED 888.0 billion in August. This decline was mainly due to a AED 0.9 billion reduction in currency in circulation outside banks and a AED 0.4 billion decrease in monetary deposits. In contrast, the money supply aggregate M2 increased by 0.2%, reaching AED 2,211.1 billion, driven by a AED 6.5 billion rise in quasi-monetary deposits, which offset the decline in M1.
Similarly, the money supply aggregate M3 rose by 0.8%, from AED 2,676.0 billion in July to AED 2,696.3 billion in August. The increase in M3 was attributed to the growth in M2 and an additional AED 15.1 billion in government deposits.
The monetary base expanded by 2.3%, growing from AED 718.1 billion in July to AED 734.9 billion in August. This expansion was fueled by increases in currency issued (up by 0.6%), reserve accounts (up by 6.2%), and monetary bills & Islamic certificates of deposit (up by 6.1%), despite a 10.2% decline in banks and OFCs’ current accounts and overnight deposits at the CBUAE.