The Central Bank announced that the Money Supply aggregate M1 decreased by 0.5%, from AED 781.7 billion at the end of July 2023 to AED 778.0 billion at the end of August 2023. This was due to an AED 2.8 billion reduction in Currency in Circulation Outside Banks and an AED 0.9 billion reduction in Monetary Deposits.

The Money Supply aggregate M2 increased by 0.1%, from AED 1,858.8 billion at the end of July 2023 to AED 1,860.3 billion at the end of August 2023. M2 rose due to an AED 5.2 billion rise in Quasi-Monetary Deposits, superseding the fall in M1.

The Money Supply aggregate M3 decreased by 0.2%, from AED 2,298.8 billion at the end of July 2023 to AED 2,295.1 billion at the end of August 2023. M3 decreased because of an AED 5.2 billion decrease in Government Deposits, overriding the increase in M2.

The Monetary Base decreased by 1.8%, from AED 625.0 billion at the end of July 2023 to AED 613.5 billion at the end of August 2023. The main driver of this decrease in Monetary Base was the decrease in Banks & OFCs' Current Accounts & Overnight Deposits of Banks at CBUAE by 34.9%, decrease in Currency Issued by 3.1% and decrease in Monetary Bills & Islamic Certificates of Deposit by 3.7%. Whereas, Reserve Account increased by 50.5%.

Gross banks'assets, including bankers' acceptances, rose by 0.5%, from AED 3,881.8 billion at the end of July 2023 to AED 3,901.5 billion at the end of August 2023.

Gross credit increased by 0.7% from AED 1,939.2 billion at the end of July 2023 to AED 1,953.4 billion at the end of August 2023. Gross Credit rose due to 0.8% rise in Domestic Credit.

Domestic Credit increased because of 0.6%, 1.4% and 0.8% increases in credit to the Government Sector, Public Sector (Government Related Entities) and Private Sector respectively, overshadowing 6.2% decrease in credit to Non-Banking Financial Institutions.

Total Bank Deposits grew by 0.4%, rising from AED 2,393.0 billion at the end of July 2023 to AED 2,403.5 billion at the end of August 2023. The growth in Total Bank Deposits was due to increase in Resident Deposits by 0.1% and increase in Non-Resident Deposits by 4.1%. Resident Deposits rose owing to increases in Private Sector Deposits and Non-Banking Financial Institutions Deposits by 0.7% and 2.6% respectively. However, Government Sector deposits and Public Sector (Government Related Entities) Deposits decreased by 1.1% and 2.0% respectively.