Govt deposits at AED337 bn scale record high in Sept
M3 was recorded at AED1.806 trillion as of September end, backed by a record government deposits that soared by AED53.4 billion in a single month to reach AED337 billion towards the end of the third quarter (Q3).
M3 is the sum of M2 and the government deposits and is traditionally used by economists to estimate the entire money supply within an economy, and by governments to direct policy and control inflation over medium and long-term periods.
M2, which is the sum of M1 and quasi-monetary deposits, has declined by AED44.8 billion during September, 2020, to settle at AED1.468 trillion, according to data released by the Central Bank of the UAE.
Whereas, M1, which is the sum of currency- in-circulation outside banks, and monetary deposits, has posted a record high of AED568 billion as of September end, 2020.
Currency- in-circulation had touched a record high of AED111.8 billion as of July end before closing a shade lower at AED111.3 billion as of September end.