M1 increased by 2.1% to AED686 billion at end of November 2021: Central Bank

M1 increased by 2.

1% to AED686 billion at end of November 2021: Central Bank

ABU DHABI, 7th January, 2022 – The Central Bank announced that the Money Supply aggregate M1 increased by 2.

1%, from AED 671.

6 billion at the end of October 2021 to AED 686.

0 billion at the end of November 2021.

The Money Supply aggregate M2 increased by 1.

3%, from AED 1,498.

3 billion at the end of October 2021 to AED 1,517.

1 billion at the end of November 2021.

The Money Supply aggregate M3 also increased by 0.

6%, from AED 1,819.

6 billion at the end of October 2021 to AED 1,830.

1 billion at the end of November 2021.

The rise in M1 was due to AED 0.

6 billion increase in Currency in Circulation Outside Banks and AED 13.

8 billion increase in Monetary Deposits.

M2 increased due to an elevated M1 and AED 4.

4 billion rise in Quasi-Monetary Deposits.

M3 rose due to increased M1 and M2, overshadowing AED 8.

3 billion fall in Government Deposits.

The Monetary Base expanded by 1.

5% rising from AED 455.

1 billion at the end of October 2021 to AED 461.

7 billion at the end of November 2021.

The main driving force behind this expansion in the Monetary Base was 2.

6% and 9.

8% increase in Currency Issued and Certificates of Deposit & Monetary Bills, respectively.

Whereas, Reserve Account and Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE reduced by 5.

4% and 8.

1%, respectively.

Gross banks’ assets, including bankers’ acceptances, increased by 0.

8%, rising from AED 3,271.

2 billion at the end of October 2021 to AED 3,295.

8 billion at the end of November 2021.

Gross credit increased by 1.

4% rising from AED 1,763.

0 billion at the end of October 2021 to AED 1,788.

3 billion at the end of November 2021.

Gross Credit rose because of 1.

7% increase in Domestic Credit, superseding 1.

4% decrease in Foreign Credit.

The growth in Domestic Credit was mainly due to increases by 8.

5%, 0.

9% and 4.

0% in Credit to Public Sector (Government Related Entities), Private Sector and Non-Banking Financial Institutions, respectively.

While Credit to the Government Sector decreased by 0.

6%.

Total Bank Deposits decreased marginally by 0.

03%, falling from AED 1,967.

3 billion at the end of October 2021 to AED 1,966.

8 billion at the end of November 2021.

The drop in Total Bank Deposits was due to 3.

9% reduction in Non-Resident Deposits, overriding 0.

5% increase in Resident Deposits.

Resident Deposits rose due to 0.

7%, 0.

9% and 2.

5% rise in Public Sector (Government Related Entities) Deposits, Private Sector Deposits and Non-Banking Financial Institutions Deposits, respectively.

Government Sector Deposits fell by 1.

5%.

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