Central Bank reports 10% growth in cash deposits to AED687.2 billion by end of October

The Central Bank of the UAE (CBUAE) released data showing cash deposits surged to AED 687.2 billion this October, marking a substantial annual increase of 10.2 percent, or AED 63.7 billion, compared to AED 623.5 billion in October 2022.

Breaking it down further, the Central Bank's cash aggregates statistics reveal a monthly increase of 0.19 percent, or AED 1.3 billion, compared to around AED 685.9 billion in September 2023.

During the first ten months of this year, cash deposits increased by 8.12 percent compared to about AED 635.6 billion at the end of last year, an increase of AED 51.6 billion.

The quasi-cash deposits rose to AED 1.123 trillion in October, up 24 percent year-on-year from AED 906.3 billion in October 2022, an increase of AED 216.7 billion.

Quasi-cash deposits increased by 0.93 percent on a monthly basis, equivalent to AED 10.4 billion, compared to AED 1.112 trillion in September 2023.

Quasi-cash deposits in the UAE rose by about 16.24 percent during the first ten months of this year, compared to AED 966.1 billion at the end of last year.

According to the Central Bank, 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.

Central Bank statistics showed that government deposits rose to AED 454.4 billion this October, growing by 4.34 percent on an annual basis compared to AED 435.5 billion in October 2022, an increase of AED 18.9 billion. On a monthly basis, government deposits increased by 2.53 percent compared to AED 443.2 billion in September.

The statistics pointed to an increase in the amount of currency in circulation to AED 129.3 billion at the end of October, an increase of 11.75 percent on an annual basis compared to AED 115.7 billion in October 2022, and an increase of 1.65 percent on a monthly basis compared to AED 127.2 billion in September.

In a related context, Central Bank statistics showed that the monetary base rose by 29 percent on an annual basis to reach AED 596.9 billion in October, compared to AED 462.7 billion in October 2022, an increase of AED 134.2 billion.

The monetary base includes AED 210.7 billion in monetary licences and Islamic deposit certificates, AED 80.2 billion in current accounts of banks and other financial institutions at the Central Bank and overnight deposits of banks at the Central Bank, AED 129.3 billion in currency in circulation, which includes currency outside banks in addition to currency in banks, and AED 176.7 billion in reserve account.