The Central Bank of the United Arab Emirates (CBUAE) announced Tuesday that the Money Supply aggregate M1 decreased by 0.2%, from Dh720.6 billion at the end of July 2022 to Dh719.4 billion at the end of August 2022.
The Money Supply aggregate M2 increased by 1.4%, from Dh1,606.0 billion at the end of July 2022 to Dh1,627.7 billion at the end of August 2022, according to the apex bank’s Monetary & Banking Developments Report for August 2022.
The Money Supply aggregate M3 also rose by 2.4%, from Dh1,968.3 billion at the end of July 2022 to Dh2,016.1 billion at the end of August 2022. The reduction in M1 was due to Dh1.2 billion decrease in Currency in Circulation Outside Banks, where Monetary Deposits remained constant. M2 increased due to Dh22.9 billion rise in Quasi-Monetary Deposits,overshadowing the diminished M1. M3 grew due to an augmented M2 and Dh26.1 billion increase in Government Deposits.
The Monetary Base expanded by 1.2% rising from Dh469.9 billion at the end of July 2022 to Dh475.4 billion at the end of August 2022. The main drivers of this expansion in the Monetary Base were increases in Reserve Account and Certificates of Deposit & Monetary Bills by 41.2% and 0.6%, respectively. Whereas, Currency Issued and Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE fell by 1.5% and 14.4%, correspondingly.
The gross banks’ assets, including bankers’ acceptances, rose by 0.9%, rising from Dh3,490.4 billion at the end of July 2022 to Dh3,523.5 billion at the end of August 2022.
United Arab Emirates Dirham Exchange Rate
