The Central Bank of the UAE (CBUAE) announced that gross banks’ assets, including bankers’ acceptances, increased by 0.7 per cent from AED4.35tn ($1.2tn) at the end of July 2024 to AED4.378tn ($1.2bn) at the end of August 2024.
In its Monetary and Banking Developments for August 2024, the Central Bank said that gross credit increased by 0.5 per cent from AED2.1tn ($572bn) at the end of July 2024 to AED2.113tn ($575bn) at the end of August 2024.
Gross credit increased due to increases in domestic credit by 0.5 per cent and foreign credit by 0.8 per cent.
Central Bank of the UAE
Domestic credit expansion was primarily due to increase in credit to the private sector by 0.8 per cent, overriding the reductions in credit to the public sector (government related entities) by 0.3 per cent and the non-banking financial institutions by 3.0 per cent. Credit to the government sector remained constant during August 2024.
Banks’ deposits increased by 0.2 per cent, from AED2.74tn ($745bn) at the end of July 2024 to AED2.74tn ($746bn) at the end of August 2024.
The growth in total bank deposits was the result of the rise in resident deposits by 0.8 per cent, overshadowing the decrease in the non-resident deposits by 6.4 per cent.
Resident deposits grew as a result of increases in; government sector deposits by 2.6 per cent, in private sector deposits by 1.2 per cent and in non-banking financial institutions deposits by 4.2 per cent, overriding the decrease in government related entities deposits by 5.9 per cent.
The CBUAE announced that the money supply aggregate M1 decreased by 0.1 per cent, from AED889.3 bn ($242bn) at the end of July 2024 to AED888bn ($242bn) at the end of August 2024.
This reduction was mainly due to AED900m ($245m) fall in currency in circulation outside banks and AED400m ($109) decrease in monetary deposits.
The money supply aggregate M2 increased by 0.2 per cent, rising from AED2.206tn ($601bn) at the end of July 2024 to AED2.211tn ($602bn) at the end of August 2024.
M2 increased because of AED6.5 bn ($1.8bn) growth in Quasi-Monetary Deposits, overriding the fall in M1.
The money supply aggregate M3 also increased by 0.8 per cent, from AED2.676tn ($728.6bn) at the end of July 2024 to AED2.696tn ($734bn) at the end of August 2024.
M3 expanded due to the growth in M2 and AED15.1bn ($4.1bn) increase in government deposits.
The monetary base expanded by 2.3 per cent, from AED718.1bn ($195.5bn) at the end of July 2024 to AED734.9bn ($201m) at the end of August 2024.
The growth in the monetary base was driven by increases in; currency issued by 0.6 per cent, reserve account by 6.2 per cent and monetary bills & Islamic certificates of deposit by per cent6.1, overriding the reduction in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 10.2 per cent.
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