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UAE bank deposits rise 2.5% to $569bn in June 2022

The monetary base contracted by 1.5 percent falling to AED470.7 billion in June 2022 from AED478 billion in May 2022.

Total deposits in UAE banks increased by 2.5 percent to AED2.09 trillion ($569 billion) at the end of June 2022 from AED2.04 trillion at the end of May 2022, according to the Central Bank of the United Arab Emirates.

The growth in total bank deposits was due to a 2.6 percent rise in resident deposits and a two percent increase in non-resident deposits, WAM, the state news agency reported, citing the central bank’s June 2022 monetary and banking development report.

Resident deposits increased, owing to 3.9 percent and 22.6 percent expansions in private sector deposits and non-banking financial institutions deposits, respectively.

On the other hand, government sector deposits and public sector deposits fell by 1.4 percent and 2.3 percent, respectively.

Gross credit grew by 0.03 percent, rising to AED1.87 trillion in June 2022 from AED1.85 trillion in May 2022 due to a 5.6 percent increase in foreign credit.

Meanwhile, the monetary base contracted by 1.5 percent, falling to AED470.7 billion in June 2022 from AED478 billion in May 2022.

The main drivers of tightening the monetary base were reductions in the reserve account, banks and offshore financial centres’ current accounts, overnight deposits of banks with the central bank, and certificates of deposit and monetary bills.

In addition, the central bank said that the money supply aggregate (M1) increased by 2.3 percent to AED726.2 billion in June 2022 from AED710.1 billion in May 2022.

The aggregate M2 grew by 3.5 percent month-on-month to AED1.62 trillion in June, while the aggregate M3 also rose by 2.6 percent month-on-month to AED1.94 trillion.