Money supply increases 3.3% to Dh49.6b as recovery continues

Thursday, Apr 28, 2011

Gulf News

Abu Dhabi The UAE Central Bank said yesterday the money supply M0 (currency in circulation + currency at banks) increased by 3.3 per cent from Dh48.0 billion at the end of February to Dh49.6 billion at the end of March.

For March, the money supply M1 (currency in circulation plus monetary deposits, i.e. current accounts and call accounts at banks) increased by 3.7 per cent, from Dh242.7 billion to Dh251.6 billion, said the apex bank.

As regards money supply M2, which comprises M1 plus quasi-monetary deposits (the sum of resident time and savings deposits in dirhams, commercial pre-payments in dirhams and resident deposits in foreign currencies), the Central Bank said that it increased by 2.0 per cent, from Dh818.3 billion as at the end of February to Dh834.7 billion at the end of March.

The money supply M3 (M2 plus government deposits at the banking sector) increased by 3.1 per cent, from Dh1,017.7 billion at the end of February to Dh1,048.9 billion at the end of March, it added.

Commenting on the figures, Mohammad Amerah, an Abu Dhabi-based economist said that they give a good indication about the country’s economy.