The Central Bank of the UAE (CBUAE) has published data indicating a notable increase in cash deposits to AED 687.2B in October, reflecting a substantial annual growth of 10.2 percent or AED 63.7B from October 2022’s AED 623.5B.
Breaking down the figures, the Central Bank’s cash aggregate statistics disclose a monthly rise of 0.19 percent or AED 1.3B, compared to approximately AED 685.9B in September 2023.
Over the initial ten months of this year, cash deposits have risen by 8.12 percent compared to about AED 635.6B at the previous year’s close, representing an increase of AED 51.6 B.
Quasi-cash deposits reached AED 1.123T in October, witnessing a year-on-year surge of 24 percent from October 2022’s AED 906.3B, marking an increase of AED 216.7 B.
Monthly, quasi-cash deposits increased by 0.93 percent, equivalent to AED 10.4B, compared to AED 1.112T in September 2023. Over the initial ten months of this year, quasi-cash deposits in the UAE rose by approximately 16.24 percent compared to AED 966.1B at the end of the previous year.
Distinguishing Quasi-Cash and Cash Deposits in the Financial Landscape
As per the Central Bank, quasi-cash deposits encompass term and savings deposits in dirhams for residents and deposits in foreign currency by residents. In contrast, cash deposits comprise all short-term deposits that bank customers can withdraw without prior notice.
Central Bank statistics highlight growth in government deposits to AED 454.4B in October, marking a 4.34 percent annual increase compared to October 2022’s AED 435.5B, reflecting a rise of AED 18.9 B. Government deposits increased by 2.53 percent monthly compared to September’s AED 443.2B.
The statistics also reveal an uptick in the amount of currency in circulation to AED 129.3B at the end of October, showcasing an 11.75 percent annual increase compared to October 2022’s AED 115.7B, and a 1.65 percent monthly increase compared to September’s AED 127.2B.
In a related context, Central Bank statistics demonstrate a 29 percent annual increase in the monetary base, reaching AED 596.9B in October, compared to AED 462.7B in October 2022, reflecting a surge of AED 134.2 B.
The monetary base comprises monetary licenses, Islamic deposit certificates, current accounts of banks and financial institutions at the Central Bank, overnight deposits of banks at the Central Bank, currency in circulation, and reserve accounts totalling AED 210.7B, AED 80.2B, AED 129.3B, and AED 176.7B, respectively, according to WAM.