UAE Central Bank says M1 money supply increased in November

The United Arab Emirates’ overall money supply (M1), which includes currency in circulation outside banks plus monetary deposits, increased 2.1% to 671.6 billion dirhams ($ 182.8 billion ) at the end of October 2021 to 686.0 billion dirhams at the end of November 2021, according to its central bank.

The aggregate M2 money supply, which includes longer-term deposits, increased by 1.3%, from MAD 1,498.3 billion at the end of October 2021 to MAD 1,517.1 billion at the end of November 2021.

The aggregate money supply, M3, also increased by 0.6%, from MAD 1,819.6 billion at the end of October 2021 to MAD 1,830.1 billion at the end of November 2021.

The increase in M1, the most liquid part, is due to a 13.8 billion dirham jump in monetary deposits as well as a 0.6 billion dirham increase in currency in circulation.

M2 increased due to an increase in M1 and 4.4 billion dirhams in quasi-monetary deposits.

M3 increased due to the increase in M1 and M2, offsetting an 8.3 billion dirham drop in government deposits, the central bank said.

The monetary base widened by 1.5%, from 455.1 billion dirhams at the end of October 2021 to 461.7 billion dirhams at the end of November 2021, mainly due to the increase of 2.6% and 9.8% of currencies issued and certificates of deposit and monetary bills. , respectively.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

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