UAE's M1 money supply slightly up in May - central bank

Total bank deposits slipped slightly in the month

  
Image used for illustrative purpose. United Arab Emirates dirham.

Image used for illustrative purpose. United Arab Emirates dirham.

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The aggregate money supply (M1), which includes currency in circulation outside banks plus monetary deposits, rose by 0.3 percent to 646.4 billion dirhams ($ billion) at the end of May 2021 from 644.4 billion dirhams at the end of April, the UAE Central Bank said on Monday.

Aggregate money supply M2, which includes longer-term deposits, fell by 0.3 percent from 1.46 trillion dirhams at the end of April to 1.45 trillion dirhams at the end of May.

The aggregate money supply, M3, slipped by 0.8 percent, falling to 1.75 trillion dirhams at the end of May from 1.76 trillion dirhams at the end of April.

The increase in M1, the most liquid portion, was due to 2.4 billion dirhams rise in monetary deposits which offset a 0.4 billion dirhams dip in currency in circulation.

M2 decreased due to 6 billion dirhams reduction in quasi-monetary deposits, which offset the increase in M1.

M3 fell due to the decline in M2, and a 10.6 billion dirhams drop in government deposits.

Meanwhile, total bank deposits slipped 0.1 percent, falling from 1.877 billion dirhams at the end of April 2021 to 1.874 billion at the end of May 2021, due to 0.4 percent  reduction in resident deposits, which offset a 1.5 percent rise in non-resident deposits, the central bank said.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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