The foreign assets of the UAE Central Bank (CBUAE) increased by 2.55 percent during April 2024, reaching AED750.29 billion at the end of the month, compared to AED731.62 billion ($204.27 billion) at the end of March 2024. This indicates that the CBUAE has added more than AED176 billion to its foreign assets within a year, from April 2023 to the end of April 2024.
According to the data issued by the Central Bank, bank balances and deposits with banks abroad rose to AED508.78 billion at the end of April 2024, compared to about AED489.31 billion at the end of March 2024. The value of foreign securities at the end of April 2024 amounted to AED183.93 billion. Additionally, the value of other foreign assets increased to AED57.58 billion at the end of April 2024 from their previous level of AED56.48 billion at the end of March 2024.
Expansion in gross banks’ assets and credit
Gross banks’ assets, including bankers’ acceptances, increased by 1.0 percent from AED4,254.5 billion at the end of March 2024 to AED4,296.5 billion at the end of April 2024. Gross credit grew by 0.8 percent from AED2,047.0 billion at the end of March 2024 to AED2,063.1 billion at the end of April 2024. This credit growth was driven by a 0.7 percent increase in domestic credit and a 1.4 percent increase in foreign credit.
Growth in bank deposits
Aggregate bank deposits increased by 2.3 percent, from AED2,657.1 billion at the end of March 2024 to AED2,717.5 billion at the end of April 2024. This was due to a 2.7 percent growth in resident deposits, offsetting a 2.9 percent decline in non-resident deposits.
Money supply growth
The Central Bank also reported that the money supply aggregate M1 increased by 1.6 percent, from AED878.1 billion at the end of March 2024 to AED892.4 billion at the end of April 2024. This was driven by a rise in currency in circulation outside banks and an increase in monetary deposits. The money supply aggregate M2 increased by 0.6 percent, from AED2,134.8 billion at the end of March 2024 to AED2,148.5 billion at the end of April 2024. The money supply aggregate M3 increased by 2.8 percent, from AED2,583.7 billion at the end of March 2024 to AED2,657.3 billion at the end of April 2024.
Monetary base expansion
Moreover, the monetary base expanded by 1.5 percent, from AED703.7 billion at the end of March 2024 to AED714.3 billion at the end of April 2024. This was driven by the growth in banks & OFCs’ current accounts & overnight deposits at CBUAE, offsetting the decline in currency issued, reserve account, and monetary bills & Islamic certificates of deposit.
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