The UAE Central Bank has announced that the money supply aggregate, M1 (currency in circulation outside banks and monetary deposits in current accounts and call accounts at banks), increased by 1.3 percent, from AED474 billion at the end of December 2016, to AED479.9 billion at the end of January, 2017.

The money supply aggregate, M2 (M1 plus quasi-monetary deposits or resident time and saving deposits in Dirhams and resident deposits in foreign currencies), increased by 0.4 percent, from AED1225.5 billion at the end of December 2016 to AED1230.2 billion at the end of January 2017, whilst the money supply aggregate, M3, also increased by 0.3 percent, from AED1411.4 billion at the end of December 2016 to AED1415.6 billion at the end of January 2017. M3 equals M2 plus government deposits at banks operating in the UAE as well as at the Central Bank.

The rise in the M1 aggregate was mainly due to an increase of AED1.9 billion in currency in circulation outside banks, and an increase of AED4 billion in monetary deposits. The rise in both M2 and M3 was mainly due to an inflated M1, overshadowing reductions in quasi-monetary deposits by AED1.2 billion and in government deposits by AED0.5 billion, respectively.

Gross bank assets, including bankers’ acceptances, slightly decreased by 0.03 percent, falling from AED2610.8 billion at the end of December 2016 to AED2610.1 billion at the end of January 2017.

Gross credit increased by 0.2 percent, rising from AED1574.0 billion at the end of December 2016 to AED 1577.5 billion at the end of January 2017.

During January 2017, total bank deposits decreased by AED1 billion mainly due to AED2.1 billion reduction in non-resident deposits, overriding the AED1.1 billion increase in resident deposits.