The Central Bank of the UAE (CBUAE) said that total bank deposits increased by 0.7%, rising from AED1,915.1 billion ($521.2 billion) at the end of July 2021 to AED1,928.7 billion ($525 billion) at the end of August 2021.

The apex bank attributed the rise in total bank deposits to a 0.6% increase in resident deposits and 1.5% increase in non-resident deposits, reported Emirates News Agency WAM, citing a CBUAE statement.

Resident Deposits rose due to 4.6% rise in government-related entities (GRE) deposits and 0.6% rise in private sector deposits, superseding reductions in government sector deposits and non-banking financial institutions deposits by 1.0% and 12.1%, respectively.

In the meantime, the bank announced that the Money Supply aggregate M1 increased by 1.1%, from AED653.9 billion at the end of July 2021 to AED661.1 billion at the end of August 2021.

"The money supply aggregate M2 increased by 0.7%, from AED1,477.9 billion at the end of July 2021 to AED1,487.8 billion at the end of August 2021. The Money Supply aggregate M3 also increased by 0.3%, from AED1,775.0 billion at the end of July 2021 to AED1,780.7 billion at the end of August 2021."

The rise in M1 was due to an AED9.7 billion increase in Monetary Deposits, overriding AED2.5 billion reduction in currency in circulation outside banks. M2 increased due to an increased M1 and an AED2.7 billion rise in Quasi-Monetary Deposits. M3 rose due to increases in M1 and M2, overshadowing AED4.2 billion drop in government deposits.

The Monetary Base expanded by 1.8 % rising from AED436.9 billion at the end of July 2021 to AED444.7 billion at the end of August 2021, added the statement. "The main driving force behind this expansion in the Monetary Base was 68.5% increase in Banks & OFCs’ current accounts & overnight deposits of banks at CBUAE, overshadowing the fall in Currency Issued by 2.6%, in Reserve Account by 16.2% and in certificates of deposit & monetary bills by 1.5%."

Gross banks’ assets, including bankers’ acceptances, decreased by 0.2%, declining from AED3,233.4 billion at the end of July 2021 to AED3,228.5 billion at the end of August 2021, according to the bank's figures.

"Gross credit increased by 0.2% climbing from AED1,768.6 billion at the end of July 2021 to AED1,771.4 billion at the end of August 2021,”the statement said.

It attributed the gross credit increase to a 0.3% rise in domestic credit, overshadowing the 0.8% fall in foreign credit. The rise in domestic credit was mainly due to 0.6%, 0.3% and a 4.5% increase in credit to the government sector, private sector and non-banking financial institutions respectively, despite the reduction in credit to public sector (GRE) by 0.3%.