UAE M1 Money Supply extends 1.5% in October to extend 909.9 Billion Dirhams

UAE’s M1 Money Supply grew 1.5 percent in October, to 909.9 billion dirhams ($247.7 billion), gratitude to a rise of 14.9 billion dirhams in monetary deposits. The growth partially offset a decline of 1.3 billion dirhams in currency circulating outside banks.

M1 represents liquid assets like cash and checkable funds in checking accounts. The M2 Money Supply, comprising M1 and quasi-monetary deposits, grew by 0.9% to 2.27 trillion dirhams at the end of October, assisted by the growth in M1 and a 7.5 billion dirham rise in quasi-monetary deposits.

M3, which includes the government deposits with M2, expanded by 1.3% to 2.75 trillion dirhams mainly on account of expansion in M2 and an increase of 13.8 billion dirhams in government deposits.

The monetary base of the UAE dropped 0.1% and adjourned the month at 743 billion dirhams. This drop was primarily led by a fall of 11.4% in the current accounts and overnight deposits of financial institutions with the central bank, while currency issuance and Islamic certificates of deposit increased.

Gross credit expanded 0.6%, up to 2.17 trillion dirhams, reflecting the rise of domestic as well as foreign credits. Moreover, the total bank deposits in the UAE rose by 1.5%. This total amounted to 2.80 trillion dirhams by the end of October, led by higher resident and non-resident deposits.