Media ININ Economy We Trust
The total assets of the Emirates Central Bank, including bank acceptance certificates, increased by 0.9%, from 3.58 trillion dirhams at the end of September 2022 to 3.61 trillion dirhams at the end of October of the same year.
Total bank credit increased by 0.2% from 1.873 trillion dirhams at the end of September to 1.877 trillion dirhams at the end of October, as a result of the increase in domestic credit by 0.1%, and foreign credit by 1.5%.
The rise in domestic credit is attributed; This led to an increase in credit extended to the public sector (government-related entities) and the private sector by 0.7% and 0.1%, respectively, exceeding the decline in credit extended to the government sector and non-banking financial institutions by 0.7% and 2.2%, respectively.
Total financial deposits increased by 0.8% from 2.18 trillion dirhams to 2.2 trillion dirhams as a result of the increase in resident deposits by 0.4% and non-resident deposits by 4.2%. Residents’ deposits increased as a result of the increase in government sector deposits and private sector deposits by 6.7% and 1.2%, respectively. While public sector deposits – “government-related entities” and deposits of non-bank financial institutions decreased by 9.8% and 24%, respectively.
The money supply “N1” maintained its stability at around 723.1 billion dirhams, due to an increase in cash circulating outside banks by 1.6 billion dirhams, exceeding the decrease recorded in cash deposits by 1.5 billion dirhams.
The money supply “N2” decreased by 1%, from 1.64 trillion dirhams to 1.62 billion dirhams, as a result of a decrease in semi-cash deposits by 16.3 billion dirhams.
The money supply “N3” also increased by 0.5%, from 466.5 billion dirhams to 468.8 billion dirhams at the end of October 2022, and the main drivers for this expansion in the monetary base account were the rise in the issued currency, reserve account, certificates of deposit and cash bills by 0.5% and 1.2 % and 7.7%, respectively. However; The current accounts and overnight deposits of banks and other financial institutions in the Central Bank decreased by 12.7%, which weakened the expansion of the monetary base.
