ABU DHABI: Gross banks’ assets, including bankers’ acceptances, increased by 1.0 percent from AED 4,254.5 billion at the end of March 2024 to AED 4,296.5 billion at the end of April 2024, according to the Monetary & Banking Developments issued by the Central Bank of the UAE (CBUAE) today.

Gross credit grew by 0.8 percent from AED 2,047.0 billion at the end of March 2024 to AED 2,063.1 billion at the end of April 2024. Gross credit growth was driven by the increase in domestic credit by 0.7 percent and in foreign credit by 1.4 percent. Domestic credit expansion was due to increase in credit to the government sector and private sector by 4.7 percent and 0.4 percent respectively, offsetting the 0.5 percent, and 3.8 percent decrease in credit to the public sector (government-related entities) and non-banking financial institutions.

Aggregate bank deposits increased by 2.3 percent, from AED 2,657.1 billion at the end of March 2024 to AED 2,717.5 billion at the end of April 2024. The increase in total bank deposits was due to the growth in resident deposits by 2.7 percent offsetting the decline in non-resident deposits by 2.9 percent.

Resident deposits expanded as a result of the growth in government and private sector deposits by 13.0 percent and 1.4 percent respectively, offsetting the decline in government related entities deposits and non-banking financial institutions deposits by 0.5 percent and 18.8 percent, respectively at the end of April 2024.

The Central Bank announced that the money supply aggregate M1 increased by 1.6 percent, from AED 878.1 billion at the end of March 2024 to AED 892.4 billion at the end of April 2024. This was due to AED 1.2 billion rise in currency in circulation outside banks, combined with AED 13.1 billion increase in monetary deposits.

The money supply aggregate M2 increased by 0.6 percent, from AED 2,134.8 billion at the end of March 2024 to AED 2,148.5 billion at the end of April 2024. M2 increased mainly due to an elevated M1, overriding the AED 0.6 billion reduction in Quasi-Monetary Deposits.

The money supply aggregate M3 increased by 2.8 percent, from AED 2,583.7 billion at the end of March 2024 to AED 2,657.3 billion at the end of April 2024. M3 increased mainly because of an amplified M2, combined with an increase of AED 59.9 billion in government deposits.

The monetary base expanded by 1.5 percent, from AED 703.7 billion at the end of March 2024 to AED 714.3 billion at the end of April 2024. The rise in monetary base was driven by the growth in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 72.0 percent, overshadowing the decline in currency issued by 0.1 percent, reserve account by 16.9 percent and monetary bills & Islamic certificates of deposit by 1.6 percent.


Tariq Al Fahaam