Central Bank Reports Growth in Money Supply and Banking Sector for June 2024

UAE, 11 September, 2024 : The Central Bank reported an increase in the money supply for June 2024. Aggregate M1 rose by 0.6%, reaching AED 884.1 billion, driven by a AED 7.3 billion increase in monetary deposits. Aggregate M2 grew by 0.4% to AED 2,169.4 billion, due to higher M1 and a AED 4.2 billion rise in quasi-monetary deposits. Aggregate M3 also increased by 0.1% to AED 2,632.0 billion, fueled by M2 growth despite a AED 6.8 billion drop in government deposits.

The monetary base declined by 0.3% to AED 725.0 billion, due to decreases in currency issued and banks' current accounts, although reserves rose by 37.3%.

Gross banks' assets, including bankers' acceptances, rose by 0.5% to AED 4,310.2 billion. Gross credit expanded by 1.1% to AED 2,100.9 billion, driven by a 0.8% increase in domestic credit and a 2.9% rise in foreign credit. Domestic credit growth was attributed to increased lending to the public and private sectors.

Bank deposits increased by 0.5% to AED 2,692.5 billion, with non-resident deposits rising by 8.4%. However, resident deposits fell by 0.1% due to declines in government sector deposits and deposits from government-related entities, offset by increases in private sector deposits and non-banking financial institutions deposits.

Source : www.centralbank.ae