UAE money supply growth slows to 2.1% at April end

Money circulating in the world's 3rd largest oil producer had more than doubled since 2008.
UAE money supply growth slows to 2.1% at April end
SUPPLY GROWTH: Money supply in the UAE grew 2.1% year on year at the end of April, down from a 3.3% rise the previous month. (Getty Images)
By Martin Dokoupil
Wed 19 May 2010 09:20 PM

Money supply in the UAE grew 2.1 percent year on year at the end of April, down from a 3.3 percent rise in the previous month, central bank data showed on Wednesday.

M3, the broadest measure of money circulating in the economy and an indicator of future inflation, grew only 1.4 percent in February in the slowest pace since at least 2001 as banks grappled with Dubai's debt restructuring.

It rose to $256.2 billion at the end of April, from $254.5 billion at the end of March, the data showed.

Money circulating in the second largest Arab economy and the world's third largest oil producer had more than doubled in the two years to the end of 2008.

Bank credit grew 2.4 percent year on year to $278.2 billion in April, but edged down marginally from $278.24 billion in March, the data showed.

Provisioning levels for non performing loans rose 4.7 percent month on month to $9.8 billion to reach their highest level since at least December 2008, up from a 2.4 percent rise in March. (Reuters)

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