ABU DHABI, The Central Bank has announced that the Money Supply aggregate, M1, decreased by 1.7 percent, from AED496.4 billion at the end of July 2018, to AED488.1 billion at the end of August 2018.
M2 also decreased by 1.8 percent, from AED1,302.3 billion at the end of July 2018, to AED1,278.9 billion at the end of August 2018, the Central bank added in a statement.
However, the Money Supply aggregate M3 increased by 0.1 percent, from AED1,556 billion at the end of July 2018, to AED1,556.9 billion at the end of August 2018. The reduction in M1 was mainly due to a decrease of AED7.4 billion in Monetary Deposits and of AED0.9 billion in Currency in Circulation outside Banks. The fall in M2 was brought about by the decreased M1 and an AED15.1 billion reduction in Quasi-Monetary Deposits. M3 rose due to an AED24.3 billion increase in Government Deposits, overshadowing the decreases in M1 and M2.
Gross bank assets, including bankers’ acceptances, increased by 0.9 percent, rising from AED2774.5 billion at the end of July 2018 to AED2800.3 billion at the end of August 2018. Gross credit also increased by 0.6 percent from AED1,622.9billion at the end of July 2018 to AED1,632.8 billion at the end of August 2018, the statement continued.
During August 2018, total bank deposits increased by AED8 billion, due to AED3.2 billion increase in Resident Deposits and AED4.8 billion increase in Non-Resident Deposits.
Source: Emirates News Agency