The Central Bank announced that the Money Supply aggregate M1 increased by 1.3%, from AED 752.1 billion at the end of January 2023 to AED 762.0 billion at the end of February 2023. This was due to AED 0.5 billion and AED 9.4 billion growth in Currency in Circulation Outside Banks and in Monetary Deposits, respectively.

The Money Supply aggregate M2 climbed by 1.7%, from AED 1,719.9 billion at the end of January 2023 to AED 1,749.4 billion at the end of February 2023. M2 rose due to an increased M1 and a rise of AED 19.6 billion in Quasi-Monetary Deposits.

The Money Supply aggregate M3 also climbed by 0.3%, from AED 2,124.0 billion at the end of January 2023 to AED 2,130.2 billion at the end of February 2023. M3 primarily increased because of an elevated M2, overshadowing the AED 23.3 billion fall in Government Deposits.

The Monetary Base expanded by 1.4% climbing from AED 536.4 billion at the end of January 2023 to AED 543.9 billion at the end of February 2023. The main drivers of this expansion of the Monetary Base were increases in Currency Issued and Monetary Bills & Islamic Certificates of Deposit by 0.5% and 8.3%, respectively. Reserve Account and Banks & OFCs' Current Accounts & Overnight Deposits of Banks at CBUAE fell by 1.1% and 4.0%, correspondingly.

Gross banks’ assets, including bankers’ acceptances, rose by 2.2%, from AED 3,668.2 billion at the end of January 2023 to AED 3,747.8 billion at the end of February 2023.

Gross credit increased by 1.2% from AED 1,874.3 billion at the end of January 2023 to AED 1,896.9 billion at the end of February 2023. Gross Credit grew due to 1.6% increase in Domestic Credit, overriding a 2.1% decline in Foreign Credit.

Domestic Credit expanded because of 2.8% and 3.2% increase in credit to the Private Sector and the NonBanking Financial Institutions, correspondingly. Whereas, credit to the Government Sector and the Public Sector (Government Related Entities), decreased by 0.2% and 2.1%, respectively.

Total Bank Deposits increased by 0.4%, rising from AED 2,233.2 billion at the end of January 2023 to AED 2,242.3 billion at the end of February 2023. The growth in Total Bank Deposits was due to increases in Resident Deposits by 0.2% and Non-Resident Deposits by 2.0%. Resident Deposits improved owing to increases by 2.1% in both Private Sector and Public Sector (Government Related Entities) Deposits. However, Government Sector Deposits and Non-Banking Financial Institutions' Deposits fell by 5.9% and 8.7%, individually.