Central Bank of the UAE reports November 2025 money supply shift with M1 down 1.7% and M2 and M3 up 1.5%

The Central Bank of the UAE published its Monetary and Banking Developments summary for November 2025, showing a contraction in narrow money (M1) alongside continued expansion in broader aggregates (M2 and M3), with the monetary base, bank assets, credit and deposits all rising over the month. M1 fell 1.7% to AED 1,048.1 billion, driven by a 2.3% decline in monetary deposits that outweighed a 2.2% increase in currency in circulation outside banks. M2 rose 1.5% to AED 2,669.3 billion on AED 58.2 billion growth in quasi-monetary deposits, while M3 increased 1.5% to AED 3,216.3 billion, reflecting higher M2 plus an AED 8.6 billion increase in government deposits. The monetary base grew 1.7% to AED 850.1 billion, supported by increases in the reserve account (21.5%), currency issued (2.6%) and monetary bills and Islamic certificates of deposit (8.8%), despite a 37.3% fall in banks’ and other financial corporations’ current accounts and banks’ overnight deposits at the Central Bank. Gross bank assets increased 0.8% to AED 5,251.9 billion; gross credit rose 0.7% to AED 2,532.9 billion on higher domestic credit (up AED 9.0 billion) and foreign credit (up AED 8.7 billion), with domestic credit up for the government sector (2.6%), private sector (0.4%) and non-banking financial institutions (3.6%) and down for government-related entities (1.0%). Banks’ deposits increased 1.0% to AED 3,236.6 billion, led by resident deposits (up 1.4% to AED 2,971.2 billion) while non-resident deposits fell 2.4% to AED 265.4 billion; within resident deposits, government sector deposits rose 0.6% to AED 439.2 billion, private sector deposits rose 1.2% to AED 2,187.3 billion, government-related entities deposits rose 3.0% to AED 282.7 billion, and non-banking financial institutions deposits rose 3.3% to AED 62.0 billion.