CBUAE Reports 1.6% Increase in Money Supply for November 2024

UAE, 25 February, 2025 :  The Central Bank of the UAE (CBUAE) announced a 1.6% increase in the money supply aggregate M1, rising from AED 909.9 billion in October 2024 to AED 924.8 billion by the end of November. This growth was driven by a rise of AED 4.9 billion in currency in circulation and a AED 10.0 billion increase in monetary deposits.

Meanwhile, the money supply aggregate M2 saw a 0.4% increase, reaching AED 2,278.9 billion by the end of November. The growth was attributed to M1's rise, outweighing a decline in quasi-monetary deposits by AED 6.7 billion.

The M3 aggregate also grew by 0.5%, reaching AED 2,767.4 billion, primarily due to increases in M2 and a AED 4.5 billion rise in government deposits.

The monetary base increased by 0.7% to AED 748.0 billion, driven by a 3.1% rise in currency issued and a 26.9% increase in reserve accounts. However, current accounts and overnight deposits at the CBUAE dropped by 31.5%, while monetary bills and Islamic certificates of deposit declined by 5.6%.

In banking activity, gross bank assets slightly decreased by 0.1% to AED 4,451.4 billion, and gross credit fell by 0.5%, driven by a decline in domestic credit. Banks’ deposits rose by 0.1% to AED 2,804.4 billion, supported by a 0.5% increase in resident deposits, despite a drop in non-resident deposits by 4.4%.

These developments indicate continued adjustments in the UAE's monetary landscape, with growth in key aggregates and a slight reduction in certain credit and deposit categories.