The UAE Central Bank has announced that the money supply aggregate ‘M1’ decreased by 0.9%, from AED497.5 billion ($135.44 billion) at the end of July 2017 to AED493.2 billion at the end of August 2017.
In a statement, the bank said, “The money supply aggregate ‘M2’ decreased by 1.5%, from AED 1,264.4 billion at the end of July 2017 to AED1,245.5 billion at the end of August 2017, WAM reported.
“The Money Supply aggregate ‘M3’ also decreased by 0.6%, from AED1,459.1 billion at the end of July 2017 to AED1,450.6 billion at the end of August 2017.”
It added, “The fall in ‘M1’ was mainly due to a reduction of AED5.4 billion in monetary deposits. The fall in ‘M2’ was brought about by a decreased ‘M1’, and an AED14.6 billion decrease in quasi-monetary deposits. ‘M3’ mainly fell due to decreased ‘M1’ and ‘M2’, overshadowing an AED 10.4 billion increase in government deposits.”
Gross bank assets, including bankers’ acceptances, decreased by 0.6%, falling from AED2,632.7 billion at the end of July 2017 to AED2,617.9 billion at the end of August 2017.
Gross credit decreased by 1%, falling from AED1,594.5 billion at the end of July 2017 to AED1,579.0 billion at the end of August 2017.
During August 2017, total bank deposits also decreased by AED10 billion mainly due to AED7.5 billion and AED 2.5 billion reduction in resident deposits and non-resident deposits, respectively.
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