UAE money supply growth surges 34%

Abu Dhabi: Annual money supply growth in the UAE, an indicator of future inflation, jumped 33.8 per cent at the end of September, central bank data showed on Monday.

M3, the broadest measure of money circulating in the economy, was Dh623.4 billion on September 30, compared with Dh466.08 billion a year earlier, data obtained by Reuters showed.

Investors piled money into UAE dirhams late last year on expectations that the second-largest Arab economy would drop its dirham's peg to the dollar, which hit record lows against the euro and a basket of major currencies in November. M3 was Dh600.3 billion at the end of June.

Quasi money, which measures cash in bank accounts other than demand deposits, jumped 36.7 per cent to Dh349.76 billion at the end of September, driven by a 40.2 per cent jump in dirham deposits to Dh236.96 billion.

Foreign currency deposits also rose 29.7 per cent to Dh112.79 billion.