Money Supply M0 Reaches AED 53.8 Billion at the End of May

The UAE Central Bank announced that money supply M0 (currency in circulation + currency at banks) increased by 0.4% from AED 53.6 billion at the end of April 2012 to AED 53.8 billion at the end of May 2012. Money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) decreased by 1.5%, from AED 286.1 billion at the end of April 2012 to AED 281.7 billion at the end of May of the same year.

Money supply aggregate M2 which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies), decreased by 3.2%, from AED 859.2 billion at the end of April 2012 to AED 832.1 billion at the end of May of the same year.

Money supply aggregate, M3 (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) decreased by 1.3%, from AED 1,069.8 billion at the end of April to AED 1,055.7 billion at the end of May of the same year. Total bank deposits decreased by 1.2% during the month of May 2012 to close at AED 1,125.1 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) increased by 0.2% to reach AED 1,074.7 billion. However, total bank assets decreased by 0.9% to reach AED 1,725.8 billion, at the end of May. During the first 5 months of 2012, intermediary monetary aggregate M2 increased by 0.8%, while bank loans and advances increased by 0.3% and bank deposits by 5.2%.