The volume of cash circulating in the market, which is being dealt outside the banks by the end of last April, reached 90.9 billion dirhams, with a monthly increase of 4.7 billion dirhams, compared to what was recorded at the end of the previous March, which is estimated at 86.2 billion dirhams, according to the data of the monetary survey report for April 2020 Issued yesterday by the Central Bank.
The report indicated that cash deposits increased by 12.9 billion dirhams last April to 469.4 billion dirhams, compared to 456.5 billion dirhams at the end of March, with a monthly growth of 2.8%.
The “Central” report defines cash deposits as all short-term deposits that banks ’customers can withdraw without prior notice.
The report showed that government deposits also increased during April by a value of 27.5 billion dirhams, recording a cumulative balance at the end of the comparison period of 286.7 billion dirhams, compared to 259.2 billion at the end of last March, with a monthly growth of 10.6%.
According to the “Central” report, the monetary base of the UAE decreased by 407.5 billion dirhams at the end of April, compared to 415.2 billion at the end of March, a decrease of 7.7 billion dirhams.
The certificates of deposit owned by the banks, and against which they are held with liquidity at the Central Bank, achieved a great leap during last April, with a monthly increase of 54.2 billion dirhams, equivalent to 34.5% growth, reaching at the end of April 198.8 billion dirhams, compared to 144.6 billion dirhams at the end of March.
The banks ’purchase of investment certificates of deposit and investing them in exchange for interest reflects strong levels of liquidity in light of declining lending rates and weak demand due to the repercussions of“ Covid 19 ”.
The report also showed that the surplus reserves of banks and other financial institutions amounted to 30.2 billion dirhams at the end of April, compared to 32.8 billion dirhams at the end of March, a decrease of 2.6 billion dirhams, and a monthly decrease of 7.9%.
469.4
Billion dirhams in total cash deposits at the end of last April.