UAE Central Bank Reports 3.3% Rise in M2 and 1.6% Growth in Credit for March 2025
The Central Bank of the UAE (CBUAE) reported a broad expansion across key monetary indicators in March 2025, highlighting continued liquidity growth and credit expansion within the banking sector.
Money supply aggregate M1 rose by 0.4% to AED986.2 billion, driven by a AED5.1 billion increase in currency in circulation, which outweighed a AED1.4 billion drop in monetary deposits. M2, which includes M1 and quasi-monetary deposits, recorded a stronger 3.3% increase, reaching AED2,437.7 billion, buoyed by a AED73.8 billion jump in quasi-monetary deposits.
M3, the broadest measure of money supply, climbed 2.9% to AED2,893.7 billion, reflecting the growth in M2 along with a AED4.5 billion rise in government deposits.
The monetary base also expanded by 2.0% to AED833.1 billion. This was supported by a 4.1% increase in currency issued and a sharp 62.0% surge in reserve accounts, despite significant declines in banks' overnight deposits and Islamic certificates.
Gross banking assets rose 1.9% to AED4,719.4 billion. Meanwhile, gross credit grew 1.6% to AED2,240.0 billion, driven by AED19.5 billion growth in domestic credit and AED16.2 billion in foreign credit. The private sector saw a 1.4% rise in credit, while credit to non-banking financial institutions increased by 1.9%. Government sector credit declined slightly by 0.3%.
Banks' total deposits grew by 2.3% to AED2,936.4 billion, with resident deposits rising 2.4% and non-resident deposits edging up 0.4%. Within resident deposits, the private sector and government-related entities showed strong gains, while government deposits fell 2.3%.
News Source: Emirates News Agency
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UAE Central Bank Reports 3.3% Rise in M2 and 1.6% Growth in Credit for March 2025
The Central Bank of the UAE (CBUAE) reported a broad expansion across key monetary indicators in March 2025, highlighting continued liquidity growth and credit expansion within the banking sector. Money supply aggregate M1 rose by 0.4% to AED986.2 billion, driven by a AED5.1 billion increase in currency in circulation, which outweighed a AED1.4 billion drop in monetary deposits. M2, which includes M1 and quasi-monetary deposits, recorded a stronger 3.3% increase, reaching AED2,437.7 billion, buoyed by a AED73.8 billion jump in quasi-monetary deposits. M3, the broadest measure of money supply, climbed 2.9% to AED2,893.7 billion, reflecting the growth in M2 along with a AED4.5 billion rise in government deposits. The monetary base also expanded by 2.0% to AED833.1 billion. This was supported by a 4.1% increase in currency issued and a sharp 62.0% surge in reserve accounts, despite significant declines in banks' overnight deposits and Islamic certificates. Gross banking assets rose 1.9% to AED4,719.4 billion. Meanwhile, gross credit grew 1.6% to AED2,240.0 billion, driven by AED19.5 billion growth in domestic credit and AED16.2 billion in foreign credit. The private sector saw a 1.4% rise in credit, while credit to non-banking financial institutions increased by 1.9%. Government sector credit declined slightly by 0.3%. Banks' total deposits grew by 2.3% to AED2,936.4 billion, with resident deposits rising 2.4% and non-resident deposits edging up 0.4%. Within resident deposits, the private sector and government-related entities showed strong gains, while government deposits fell 2.3%. News Source: Emirates News Agency
