STOCK Central Bank of the UAE  CBUAE
Central Bank of the UAE in Abu Dhabi Image Credit: WAM

Abu Dhabi: The Central Bank of the UAE (CBUAE) revealed in a report issued today that cash deposits increased to Dh725.8 billion in February 2024, an annual increase of 11 per cent or the equivalent of Dh71.2 billion, compared to Dh654.6 billion in February 2023.

The Central Bank's cash aggregates statistics explained that cash deposits increased monthly by 1.92 per cent or the equivalent of Dh13.7 billion, compared to about Dh712.1 billion in January 2024.

The Central Bank stated that quasi-cash deposits rose to Dh1.258 trillion in February 2024, an annual increase of 27.4 per cent, compared to Dh987.4 billion in February 2023, equivalent to Dh270.3 billion.

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The Central Bank pointed out that quasi-cash deposits increased monthly by about 5 per cent, or the equivalent of Dh59.4 billion, compared to about Dh1.198 trillion in January 2024.

According to the Central Bank, quasi-cash deposits are term deposits and savings deposits in dirhams for residents and deposits by residents in foreign currency. On the other hand, cash deposits are defined as all short-term deposits that a bank customer can withdraw without prior notice.

Central Bank statistics showed that government deposits increased to Dh430.3 billion in February 2024, with a year-on-year growth of 11.1 per cent, compared to Dh387.3 billion in February 2023, equivalent to Dh43 billion.

The statistics also highlighted an increase in the money supply to approximately Dh139.4 billion at the end of February 2024, a year-on-year increase of 12.8 per cent compared to about Dh123.6 billion in February 2023. Moreover, it increased by 3.1 per cent monthly, compared to Dh135.2 billion in January 2024.

By the end of February 2024, the money supply will be distributed as Dh18.2 billion for cash in banks and Dh121.2 billion for circulating cash outside banks.

In a related context, Central Bank statistics showed an increase in the monetary base on an annual basis by 28.3 per cent to reach Dh689.5 billion in February 2024, compared to about Dh537.4 billion in February 2023, an increase equivalent to Dh152.1 billion. Additionally, it increased by about 3 per cent on a monthly basis compared to Dh670.9 billion in January 2024.

The monetary base includes approximately Dh257 billion for cash certificates and Islamic deposit certificates, Dh111 billion for current accounts for banks and other financial institutions at the Central Bank, overnight deposits for banks at the Central Bank, and Dh139.4 billion for the money supply. This includes circulating cash outside banks, cash in banks, and a reserve account of Dh182.1 billion.

The Central Bank attributed the monthly increases in reserve accounts, current accounts, and overnight deposits for banks starting from April 2023 to the increase in the banks' reserve requirements for demand deposits from 7 percent to 11 percent.fsdf