Central Bank: M1 rises to AED 289.8 billion

Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 1.7%, from AED 285.0 billion at the end of August 2012 to AED 289.8 billion at the end of September 2012. The Central Bank of the UAE announced, in its today’s statement, that money supply M0 (currency in circulation + currency at banks) decreased by 1.6% from AED 55.7 billion at the end of August 2012 to AED 54.8 billion at the end of September 2012. The Bank added that money supply aggregate M2 which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), increased by 1.3%, from AED 835.0 billion at the end of August 2012 to AED 845.5 billion at the end of September of the same year. “Money supply aggregate, M3 (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) increased by 1.8%, from AED 1,048.8 billion at the end of August to AED 1,068.1 billion at the end of September of the same year”, the statement said. Total bank deposits increased by 1.5% during the month of September 2012 to close at AED 1,143.8 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) increased by 1.2% to reach AED 1,103.2 billion, and total bank assets increased by 1.7% to reach AED 1,763.9 billion, at the end of September 2012. During the first 9 months of 2012, intermediary monetary aggregate M2 increased by 2.4%, while bank loans and advances increased by 3.0% and bank deposits increased by 6.9%.