Media ININ Economy We Trust
MEDIA IN, Abu Dhabi, July 24, 2018 (WAM)
The monetary base of the banking system continued its growth for the second month in a row to 354 billion dirhams in June, up 1.1 percent from 350 billion dirhams in May, according to statistics released today by the Central Bank of the UAE.
According to the central bank’s monetary review report, the growth in the monetary base of the banking system came in line with the rise in the bank reserve balance of 125.1 billion dirhams at the end of June compared to 124.4 billion dirhams in May.
The value of the issued cash item reached AED 86.1 billion during the same period, while the balance of certificates of deposit held by banks reached AED 125.2 billion. In contrast, excess reserves of banks and other financial institutions increased to AED 17.5 billion at the end of June 2018 .
During the period from the end of May 2018 to the end of June, the monetary multiplier for 1, 2 and 3 declined from 1.43 to 1.40, from 3.73 to 3.67 and from 4.40 to 4.39 respectively.
According to definitions approved by the Central Bank, N1 – cash out of banks + cash deposits – current accounts and accounts on call with banks .. Including 2 n 1 + quasi-cash deposits “time deposits and savings deposits for residents of dirhams and deposits of residents in foreign currencies either N3 includes N2 + government deposits with banks operating in the United Arab Emirates, as well as with the Central Bank.
