Central Bank announces monetary and banking developments for May, 2016

The Central Bank has announced that the Money Supply aggregate M1 decreased by 0.9 percent from AED 493.4 billion at the end of April, 2016, to AED 488.9 billion at the end of May, 2016.

The Money Supply aggregate M2 decreased by 1.4 percent, from AED 1203.1 billion at the end of April, 2016 to AED 1186.4 billion at the end of May, 2016.

The Money Supply aggregate M3 also decreased by 0.2 percent, from 1373.9 billion at the end of April, 2016 to AED 1371.3 billion at the end of May, 2016.

The reduction in M1 was mainly due to a decrease of AED 4.8 billion in Monetary Deposits. The decrease in M2 was mainly attributed to a reduction of AED 12.2 billion in Quasi-Monetary Deposits. However, the increase in Government Deposits by AED 14.1 billion mitigated the reduction in M3.

Gross bank assets, including bankers’ acceptances, increased by 0.6 percent, going from AED 2491 billion at the end of April, 2016 to AED 2506.1 billion at the end of May, 2016.

Gross credit increased by 1 percent, rising from AED 1516.3 billion at the end of April, 2016 to AED 1531.8 billion at the end of May, 2016.

During May, 2016, total bank deposits increased by AED 6.3 billion due to AED 2 billion and AED 4.3 billion increases in Resident Deposits and Non-Resident Deposits, respectively.