Central Bank of the UAE Reports Significant Increases in Monetary Aggregates for February 2024

UAE, 30 April, 2024 :  The Central Bank of the UAE revealed significant increases across key monetary aggregates in February 2024.

The money supply aggregate M1 saw a 2.0% uptick, rising from AED830.0 billion in January 2024 to AED847.0 billion by February 2024. This increase was driven by a AED3.3 billion rise in currency in circulation outside banks and a AED13.7 billion increase in monetary deposits.

Meanwhile, the money supply aggregate M2 surged by 3.8%, reaching AED2,104.7 billion by February 2024. This rise was attributed to an elevated M1 and a AED59.4 billion increase in quasi-monetary deposits.

Similarly, the money supply aggregate M3 increased by 2.3%, climbing from AED2,478.0 billion in January 2024 to AED2,535.0 billion by February 2024. This growth was mainly fueled by an augmented M2, outweighing a AED19.4 billion fall in government deposits.

The monetary base expanded by 2.7%, reaching AED688.7 billion by the end of February 2024. This increase was primarily driven by rises in currency issued, reserve accounts, and monetary bills & Islamic certificates of deposit.

Gross banks' assets witnessed a 2.2% increase, growing from AED4,109.1 billion in January 2024 to AED4,198.0 billion by February 2024.

Gross credit also experienced a 0.9% rise, increasing from AED1,996.2 billion in January 2024 to AED2,013.5 billion by February 2024. This growth was fueled by a 1.1% increase in domestic credit, while foreign credit saw a 0.6% decrease.

Total bank deposits climbed by 2.7%, reaching AED2,608.0 billion by the end of February 2024. This rise was propelled by increases in resident deposits by 2.5% and non-resident deposits by 5.0%.

It's important to note that M1 includes currency in circulation outside banks and monetary deposits, M2 includes M1 plus quasi-monetary deposits, and M3 comprises M2 plus government deposits at banks operating in the UAE as well as at the Central Bank.

Source : www.centralbank.ae