The UAE Central Bank today announced that the Money Supply aggregate M1 increased by 5 percent, from AED514.8 billion at the end of December 2019 to AED540.4 billion at the end of January 2020.

A report issued by the Central Bank attributed the rise in M1 to the AED2.6 and AED23 billion increases in Currency in Circulation Outside Banks and Monetary Deposits, respectively.

It added that the Money Supply aggregate M2 also increased by 1.1 percent, from AED1411.5 billion at the end of December 2019 to AED1426.8 billion at the end of January 2020.

The Bank said that M2 increased as a result of an increased M1, overshadowing an AED10.3 billion reduction in Quasi-Monetary Deposits.

Meanwhile, the Money Supply aggregate M3 decreased by 1.6 percent, from AED1717.4 billion at the end of December 2019 to AED1689.7 billion at the end of January 2020.

M3 mainly decreased due to a AED43 billion fall in Government Deposits, overriding the increases in M1 and M2, the bank added.

The report stated that the gross bank assets, including bankers’ acceptances, fell by 0.2 percent, reducing from AED3085.8 billion at the end of December 2019 to AED3080.3 billion at the end of January 2020.

Moreover, the gross credit also decreased by 1.3 percent from AED1759.2 billion at the end of December 2019 to AED1736.9 billion at the end of January 2020.

During January 2020, total bank deposits decreased by AED43.9 billion, due to AED32.9 billion and AED11 billion reductions in Resident Deposits and Non-Resident Deposits, respectively.

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