UAE BARQ برق الإمارات – نبضك
The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 1.8%, from AED 965.3 billion at the end of January 2025 to AED982.9 billion at the end of February 2025. The increase was due to AED4.1 billion growth in currency in circulation outside banks and AED13.5 billion rise in monetary deposits.
According to the apex bank’s Monetary & Banking Developments – February 2025, the money supply aggregate M2 increased by 1.8%, increasing from AED2,319.3 billion at the end of January 2025 to AED2,361.9 billion at the end of February 2025. M2 increased because of an elevated M1, and AED25.0 billion rise in Quasi-Monetary Deposits.
The money supply aggregate M3 also increased by 0.8%, from AED2,789.8 billion at the end of January 2025 to AED2,813.4 billion at the end of February 2025. M3 increased mainly due to the growth in M2, overriding the AED 19.0 billion decrease in government deposits.
The monetary base increased by 3.1%, from AED791.9 billion at the end of January 2025 to AED816.6 billion at the end of February 2025. The growth in the monetary base was driven by increases of; 3.4% in currency issued, 11.4% in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE and 6.2% in monetary bills & Islamic certificates of deposit, overshadowing the 6.1% decrease in reserve account.
Gross banks’ assets, including bankers’ acceptances, increased by 1.6% from AED4,562.3 billion at the end of January 2025 to AED4,636.8 billion at the end of February 2025.
Gross credit increased by 0.9% from AED2,186.3 billion at the end of January 2025 to AED2,205.1 billion at the end of February 2025. Gross credit increased due the combined increases in domestic credit by AED1.7 billion and foreign credit by AED17.1 billion. The growth in domestic credit was due to increases in credit to the; private sector by 0.7% and non-banking financial institutions by 5.2%. Credit to the public sector (government-related entities) decreased by 2.0%, and credit to the government
sector decreased by 1.4%.
Banks’ deposits increased by 1.2%, from AED2,840.7 billion at the end of January 2025 to AED2,874.6 billion at the end of February 2025. The increase in bank deposits was due to the growth in resident deposits by 0.8%, settling at AED2,625.5 billion and in non-resident deposits by 5.1%, reaching AED249.1 billion.
Within the resident deposits; government-related entities deposits increased by 3.8%, private sector deposits increased by 1.4% and non-banking financial institutions deposits increased by 5.6%, while deposits to the government sector decreased by 4.0% by the end of February 2025.
