Tuesday 21, March 2017 by Georgina Enzer

M1 increases by 1.9 per cent: UAE Central Bank

The money supply aggregate M1 increased by 1.9 per cent, from AED 479.9 billion at the end of January 2017 to AED 488.9 billion at the end of February 2017, according to the UAE Central Bank.

The money supply aggregate M2 also increased. It went up by 1.1 per cent, from AED 1230.2 billion at the end of January 2017 to AED 1244.2 billion at the end of February 2017.

The money supply aggregate M3 also increased by 1.9 per cent, from AED 1415.6 billion at the end of January 2017 to AED 1442.5 billion at the end of February 2017, according to the UAE Central Bank’s statement.

The M1 increase was largely due to an increase of AED 8.7 billion in monetary deposits, while the rise in M2 was caused by an increased M1 and an increase of AED 5 billion in quasi-monetary deposits. M3 rose due to increased M1 and M2 and an increase in government deposits by AED 12.9 billion.

Gross bank assets, including bankers’ acceptances, increased by 0.6 per cent, rising from AED 2610.1 billion at the end of January 2017 to AED 2626.3 billion at the end of February 2017.

Gross credit increased by 0.5 per cent, rising from AED 1577.5 billion at the end of January 2017 to AED 1585.6 billion at the end of February 2017 During February 2017, total bank deposits also increased by AED 19.5 billion mainly due to AED 24.7 billion increase in resident deposits, overriding the AED 5.2 billion fall in non-resident deposits.

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