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UAE Central Bank data revealed an increase in total bank deposits by 0.4%, from 2.233 trillion dirhams at the end of January 2023 to 2.242 trillion dirhams at the end of February 2023. The increase in total bank deposits is attributed to the increase in resident deposits by 0.2%, and non-resident deposits. By 2.0%, residents’ deposits improved as a result of increases of 2.1% in deposits of private sector and public sector GREs. While government sector deposits and non-bank financial institutions deposits decreased by 5.9% and 8.7% individually.
And the “Central” announced that the total money supply (N1) increased by 1.3%, from 752.1 billion dirhams at the end of January 2023 to 762 billion dirhams at the end of February 2023.
This is due to increases in cash circulating outside banks and cash deposits by 500 million dirhams and 9.4 billion dirhams, respectively. The total money supply (20) increased by 1.7%, from 1.72 trillion dirhams at the end of January 2023 to 1.75 trillion dirhams at the end of February 2023.
The increase in the money supply (20) was due to the increase in the money supply (N1), and the increase in semi-cash deposits by 19.6 billion dirhams. The total money supply (N3) also increased by 0.3%, from 2.124 trillion dirhams at the end of January 2023 to 2.13 trillion dirhams. At the end of February 2023.
This increase is mainly attributed to the money supply (M3), to the increase in the money supply (20), which offset a decrease of 23.3 billion dirhams in government deposits.
monetary base
The monetary base expanded by 1.4%, from 536.4 billion dirhams at the end of January 2023 to 543.9 billion dirhams at the end of February 2023.
The main drivers for this expansion of the monetary base were increases in currency issued, cash bills, and Islamic certificates of deposit by 0.5% and 8.3%, respectively. Reserve account, current accounts and overnight deposits of banks and other financial institutions at the Central Bank decreased by 1.1% and 4.0%, respectively.
Total banking assets, including bank acceptance certificates, increased by 2.2%, from 3,668 trillion dirhams at the end of January 2023 to 3,747.8 trillion dirhams at the end of February.
Total bank credit increased by 1.2%, from 1.874 trillion dirhams at the end of January 2023 to 1.896 trillion dirhams at the end of February.
Total credit increased due to the 1.6% increase in domestic credit, outperforming the 2.1% decrease in foreign credit.
The expansion of domestic credit is attributed to an increase of 2.8% and 3.2% in credit to the private sector and to non-banking financial institutions, respectively. While credit to the government sector and to public sector government-related entities decreased by 0.2% and 2.1%, respectively.
