CBUAE Highlights Monetary and Banking Trends for August 2024

UAE, 4 December, 2024 :  The Central Bank of the UAE (CBUAE) has released its report on monetary and banking developments for August 2024.

The money supply aggregate M1 declined by 0.1% to AED 888 billion due to decreases in currency in circulation and monetary deposits. Meanwhile, M2 rose by 0.2% to AED 2,211.1 billion, driven by a growth in quasi-monetary deposits. M3 saw a 0.8% increase to AED 2,696.3 billion, primarily due to higher government deposits and growth in M2.

The monetary base expanded by 2.3%, reaching AED 734.9 billion, fueled by increases in currency issuance, reserve accounts, and monetary bills, offsetting reductions in overnight deposits at the Central Bank.

Gross bank assets grew by 0.7% to AED 4,378 billion, while gross credit rose 0.5% to AED 2,112.9 billion, with domestic credit up 0.5% and foreign credit up 0.8%.

Bank deposits increased by 0.2% to AED 2,740.5 billion, led by a 0.8% rise in resident deposits, which outweighed a 6.4% drop in non-resident deposits. Resident deposit growth was bolstered by higher deposits in the government, private, and non-banking financial institution sectors.