Total foreign exchange traded at the end of August reached AED 75.4 billion, an increase of close to AED 5 billion during the last eight months of this year, compared to AED 70.5 billion at the end of December 2018.
The growth of cash outside banks reflects a number of factors, most notably the strength of the UAE economy, rising population, and seasonal effects such as holiday periods, holiday season or schools.
The monetary survey for the month of August, issued by the Central Bank, yesterday, showed that the monetary base of the UAE recorded at the end of August last year 386.3 billion dirhams, up from 379.7 billion dirhams at the end of 2018, an increase of 6.6 billion dirhams. According to Central Bank statistics, this is the largest value ever reached by the monetary base in the country.
In August 2019 alone, the monetary base expanded by 0.1%.
According to statistics, the monetary base grew as a result of an increase in bank reserves (constituting 33% of the monetary base) by 8.1%, and an increase in certificates of deposit purchased by banks (38.9% of the monetary base) by 5.2%, despite the decrease in cash issued It constitutes 23.3% of the monetary base (1.7%), and the excess reserves of banks and other financial institutions (4.7% of the monetary base), decreased by 17.6%.