The Central Bank of the UAE (CBUAE) has announced that the gross banks’ assets, including the bankers’ acceptances, increased by 1.9% from AED4.63 billion ($1.26 billion) at the end of February to AED4.72 billion ($1.28 billion) at the end of March.

 

Banks’ deposits too recorded an increase of 2.3%, from AED2.87 billion to AED2.94 billion at the end of March. This increase in bank deposits was driven by the shared growth in resident deposits by 2.4%, settling at AED2.68 billion and in non- resident deposits by 0.4%, reaching AED248.6 billion. 

 

Within the resident deposits; government-related entities deposits increased by 4.3%, private sector deposits increased by 3.1% and non-banking financial institutions deposits increased by 5.1%, while deposits to the government sector decreased by 2.3%, by the end of March 2025, it stated.

 

According to CBUAE, the gross credit increased by 1.6% from AED2.2 billion at the end of February 2025 to AED2.24 billion at the end of March 2025. 

 

This jump was mainly due to the combined growth in domestic credit by AED19.5 billion and foreign credit by AED16.2 billion. 

 

The rise in domestic credit was due to increases in credit to the public sector (government-related entities) by 0.2%, private sector by 1.4% and non-banking financial institutions by 1.9%, while credit to the government sector decreased by 0.3%, said the CBUAE data.

 

The increase in money supply aggregate M1 by 0.4%, from AED982.4 billion at the end of February 2025 to AED986.2 billion at the end of March 2025.

 

This increase was due to AED5.1 billion growth in currency in circulation outside banks, overriding the AED1.4 billion decrease in monetary deposits.

 

The money supply aggregate M2 increased by 3.3%, increasing from AED 2,360.3 billion at the end of February 2025 to AED2,437.7 billion at the end of March 2025. M2 increased because of an elevated M1, and AED73.8 billion increase in Quasi-Monetary Deposits, it stated.

 

According to CBUAE, the monetary base increased by 2.0%, from AED816.6 billion at the end of February 2025 to AED833.1 billion at the end of March 2025. 

 

The growth in the monetary base was driven by increases in currency issued by 4.1% and in reserve account by 62.0%, overriding the decrease in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 64.2% and in monetary bills & Islamic certificates of deposit by 6.3%, it added.-

TradeArabia News Service