Cash deposits in UAE hit Dhs687.2bn by October-end

Image courtesy: WAM

The Central Bank of the UAE (CBUAE) said cash deposits rose 10.2 per cent or Dhs63.7bn to Dhs687.2bn by the end of October compared to Dhs623.5bn for the corresponding period a year earlier.

The latest data from the CBUAE shows a monthly increase of 0.19 per cent, or Dhs1.3bn from around Dhs685.9bn in September 2023.

The central bank said cash deposits during the first ten months of 2023 soared by 8.12 per cent or Dhs51.6bn compared to about Dhs635.6bn at the end of 2022.

The quasi-cash deposits rose to Dhs1.12tn in October, up 24 per cent year-on-year (YoY) from Dhs906.3bn in October 2022, an increase of Dhs216.7bn.

Quasi-cash deposits increased by 0.93 per cent monthly, equivalent to Dhs10.4bn compared to Dhs1.11tn in September 2023.

Quasi-cash deposits in the UAE rose by as much as 16.24 per cent during the first ten months of the year, compared to Dhs966.1bn at the end of last year.

CBUAE said quasi-cash deposits are term deposits and savings deposits in dirhams for residents in addition to deposits by residents in foreign currency. Cash deposits, on the other hand, are defined as all short-term deposits that a bank customer can withdraw without prior notice.

UAE Government deposits

CBUAE statistics showed that government deposits reached Dhs454.4bn in October, growing by 4.34 per cent on an annual basis from Dhs435.5bn in October 2022, an increase of Dhs18.9bn. Monthly, government deposits soared by 2.53 per cent compared to Dhs443.2bn in September.

The data from the central bank pointed to an increase in the amount of currency in circulation to Dhs129.3bn at the end of October, an increase of 11.8 per cent on an annual basis compared to Dhs115.7bn in October 2022, and an increase of 1.65 per cent monthly compared to Dhs127.2bn in September.

Meanwhile, CBUAE said the monetary base rose by 29 per cent on an annual basis to reach Dhs596.9bn in October, compared to Dhs462.7bn in October 2022, an increase of Dhs134.2bn.

The monetary base includes Dhs210.7bn in monetary licences and Islamic deposit certificates, Dhs80.2bn in current accounts of banks and other financial institutions at the central bank, and overnight deposits of banks at the apex bank.

The statistics also pointed to Dhs129.3bn in currency in circulation, which includes currency outside banks in addition to currency in banks, and Dhs176.7bn in reserve account.

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