The Central Bank: The money supply "N1" will rise to 686 billion dirhams at the end of November 2021
The Central Bank announced that the money supply (N1) increased by 2.1% from 671.6 billion dirhams at the end of October 2021 to 686.0 billion dirhams at the end of November 2021
In a press release issued a short time ago, the Bank indicated that the money supply (N2) increased by 1.3% from 1498.3 billion dirhams at the end of October 2021 to 1517.1 billion dirhams at the end of November 2021.
He pointed out that the money supply (N3) also increased by 0.6% from 1819.6 billion dirhams at the end of October 2021 to 1830.1 billion dirhams at the end of November 2021.
The rise in the money supply (N1) is due to an increase of 0.6 billion dirhams in cash in circulation outside banks and an increase of 13.8 billion dirhams in cash deposits. While the increase in money supply (M3) is attributed to the increase in money supply (M1/ and (M2) despite the decrease in government deposits by 8.3 billion dirhams.
“M1” includes cash in circulation outside banks + cash deposits (current accounts and demand accounts with banks), while “M2” is defined as including M1 + semi-cash deposits (time deposits and savings deposits for residents in dirhams, and residents’ deposits in foreign currencies), and “M3” It includes N2+ government deposits with banks operating in the United Arab Emirates, as well as with the Central Bank.
The Central Bank statement indicated that the monetary base increased by 1.5%, from 455.1 billion dirhams at the end of October 2021 to 461.7 billion dirhams at the end of November 2021.
This came as a result of an increase of 2.6% and 9.8% in issued cash, certificates of deposit and cash bills, while the reserve account, current accounts and overnight deposits of banks and other financial institutions decreased by 5.4% and 8.1%, respectively.
Total bank assets increased by 0.8% from 3271.2 billion dirhams at the end of October 2021 to 3295.8 billion dirhams at the end of November 2021, and total bank credit increased by 1.4% from 1,763.0 billion dirhams at the end of October 2021 to 1788.3 billion dirhams at the end of October 2021 November 2021, as a result of a 1.7% increase in domestic credit against a 1.4% decrease in foreign credit.
The increase in domestic credit is due to an increase of 8.5%, 0.9%, and 4.0% in credit granted to the public sector/government-related entities, credit granted to the private sector and credit granted to non-bank financial institutions, respectively, while the credit granted to the government sector decreased by 0.6%. .
Total bank deposits decreased by 0.03% from AED 1967.3 billion at the end of October 2021 to AED 1966.8 billion at the end of November 2021 as a result of a 3.9% decline in non-resident deposits compared to a 0.5% increase in resident deposits.
Residents’ deposits increased as a result of an increase of 0.7%, 0.9% and 2.5% in deposits of the public sector (government-related entities), private sector deposits, and deposits of non-bank financial institutions, respectively, compared to a 1.5% decrease in government sector deposits.
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