UAE or The United Arab Emirates central bank stated that the M1 money supply got increased by 0.3 percent month-on-month in April. The M1 money supply is the money supply that includes currency in circulation outside banks and monetary deposits.
The M1 Money supply climbed to 644.4 billion dirhams ($175 billion) by the end of April this year, in contrast to 642.3 billion dirhams by the end of March.
This was due to a 1.7 billion dirhams surge in currency in circulation. Also a 0.4 billion dirhams increase in monetary deposits, the bank stated in a statement provided by WAM.
The M2 money supply or the Long-term deposits also dropped. M2 got decrased by 1.7 percent from 1.48 trillion dirhams to 1.46 trillion dirhams through the same period – associated with a drop in quasi-monetary deposits.
This decline also directed to a 0.1 percent reduction in aggregate money supply or M3.
Liquidity in the UAE banking system had turned back to pre-pandemic levels in March, the bank said. The Bank extended its economic support scheme till the end of June subsequent year.