The Central Bank announced that the Money Supply aggregate M1 increased by 2.0%, from AED 737.4 billion at the end of December 2022 to AED 752.1 billion at the end of January 2023. This was due to AED 5.0 billion and AED 9.7 billion growth in Currency in Circulation Outside Banks and in Monetary Deposits, respectively.

The Money Supply aggregate M2 climbed by 1.0%, from AED 1,703.0 billion at the end of December 2022 to AED 1,719.9 billion at the end of January 2023. M2 rose due to an increased M1 and an increase of AED 2.2 billion in Quasi-Monetary Deposits.

The Money Supply aggregate M3 also climbed by 1.1%, from AED 2,100.1 billion at the end of December 2022 to AED 2,124.0 billion at the end of January 2023. M3 increased because of an elevated M2, augmented by AED 7.0 billion growth in Government Deposits.

The Monetary Base expanded by 3.4% climbing from AED 518.7 billion at the end of December 2022 to AED 536.4 billion at the end of January 2023. The main drivers of this expansion in the Monetary Base were increases in Currency Issued, Reserve Account, Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE and Monetary Bills & Islamic Certificates of Deposit by 2.5%, 3.2%, 7.8% and 0.6%, respectively.

Gross banks'assets, including bankers' acceptances, fell marginally by 0.04%, from AED 3,669.7 billion at the end of December 2022 to AED 3,668.2 billion at the end of January 2023.

Gross credit fell by 0.4% from AED 1,881.1 billion at the end of December 2022 to AED 1,874.3 billion at the end of January 2023. Gross Credit decreased due to 0.03% reduction in Domestic Credit and 2.7% decline in Foreign Credit.

Domestic Credit declined because of 0.9% and 0.7% lessening of credit to the Government Sector and Public Sector (Government Related Entities), respectively. Whereas, Credit to Private Sector increased by 0.3% and Credit to Non-Banking Financial Institutions remained constant.

Total Bank Deposits increased by 0.5%, climbing from AED 2,222.1 billion at the end of December 2022 to AED 2,233.2 billion at the end of January 2023. The growth in Total Bank Deposits was due to the increase in Resident Deposits by 0.8%, overriding the fall in Non-Resident Deposits by 2.0%. Resident Deposits improved owing to increases by 1.7% and 1.3% in Government Sector Deposits and Private Sector Deposits, respectively. Whereas, Public Sector (Government Related Entities) Deposits and Non-Banking Financial Institutions Deposits fell by 3.6% and 0.9%, correspondingly.

Note: M1 = Currency in circulation outside Banks + Monetary;

          M2 = M1 + Quasi-monetary Deposits (resident time and saving deposits in Dirhams and resident deposits in foreign currencies)

         M3 =M2 + Government Deposits at banks operating in the UAE as well as at the Central Bank