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| 24 June, 2018

UAE Central Bank announces M1 down by 3%

The money supply aggregate M2 also decreased by 0.7 per cent

Image used for illustrative purpose. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013.

Image used for illustrative purpose. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013.

REUTERS/Ben Job

The reduction in M1 was mainly due to a fall of AED 17.4 billion in monetary deposits The UAE Central Bank has announced that the money supply aggregate M1 decreased by 3.3 per cent, from AED 517.4 billion at the end of April 2018 to AED500.1 billion at the end of May 2018.

The money supply aggregate M2 also decreased by 0.7 per cent, from AED1313.1 billion at the end of April 2018 to AED1304.4 billion at the end of May 2018, whilst the money supply aggregate M3 increased by 0.4 per cent, from AED1534 billion at the end of April 2018 to AED1539.7 billion at the end of May 2018.

The reduction in M2 was brought about by the decreased M1, overshadowing an AED8.6 billion increase in quasimonetary deposits. M3 rose due to an AED14.4 billion increase in Government deposits, overriding the decreases in M1 and M2, reported WAM.

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Gross bank assets, including bankers’ acceptances, increased by 0.9 per cent, rising from AED2711.7 billion at the end of April 2018 to AED2735.6 billion at the end of May 2018. Gross credit also increased by 0.7 per cent from AED1606.6 billion at the end of April 2018 to AED1617.3 billion at the end of May 2018.

During May 2018, total bank deposits increased by AED11.7 billion, due to AED 10.7 billion and AED 1 billion increases in resident deposits and nonResident deposits, respectively.

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