UAE money supply increases 2.3% by end of November

The UAE Central Bank yesterday announced that money supply M0 (currency in circulation plus currency at banks) increased by 2.3 per cent from Dh52 billion at the end of October 2011 to Dh53.2 billion at the end of November of the same year. "Money supply aggregate, M1 (currency in circulation plus monetary deposits; current accounts and call accounts at banks) increased by 2.2 per cent, from Dh258.8 billion at the end of October to Dh264.6 billion at the end of November of 2011," it said in an emailed press release. Aggregate "Money supply aggregate, M2 which comprises M1 and quasi-monetary deposits (resident time and savings deposits in dirhams, commercial prepayments in dirhams and resident deposits in foreign currencies), increased by 0.4 per cent, from Dh818.9 billion at the end of October to Dh822.1 billion at the end of November 2011." Article continues below "Money supply aggregate, M3. (M2 plus government deposits at bank operating in the UAE as well as at the Central Bank) increased by 0.6 per cent, from Dh1,003.9 billion at the end of October to Dh1,009.8 billion at the end of November 2011." "Total Bank deposits decreased by 0.8 per cent during the month of November 2011 to close at Dh1,053.8 billion." During the first 11 months of 2011, intermediary monetary aggregate M2 increased by 4.5 per cent, while bank loans and advances increased by 4.2 per cent and bank deposits by 0.4 per cent, the Central Bank added. Loans exceed deposits The UAE's bank loans exceeded deposits for a third consecutive month in November. Loans surpassed deposits by Dh20.7 billion in November, the Central Bank said in an emailed statement yesterday. Loans increased 0.1 per cent to Dh1,074.5 billion, while deposits declined 0.8 per cent to Dh1,053.8 billion. Lending rose 4.2 per cent and deposits gained 0.4 per cent in the first 11 months of this year, it said.