Central Bank of the UAE reports April M1 decline of 0.8 percent as bank credit and deposits rise

The Central Bank of the UAE published its April 2026 monetary and banking developments report, showing a decline in narrow money and the monetary base alongside continued expansion in banking activity. M1 fell 0.8% to AED 1,064.3 billion, while M2 was broadly unchanged at AED 2,870.4 billion and M3 remained stable at AED 3,407.7 billion. The monetary base fell 1.6% to AED 865.8 billion. Across the banking system, gross assets rose 0.2% to AED 5,570.1 billion, gross credit increased 0.9% to AED 2,720.7 billion and deposits rose 0.7% to AED 3,469.5 billion. The decline in M1 was driven mainly by a 0.9% drop in monetary deposits, while currency in circulation outside banks fell 0.2%. Stability in M2 reflected lower deposits from Other Financial Corporations and Government-Related Entities being fully offset by higher private sector deposits, particularly corporate deposits, and unchanged government sector deposits kept M3 flat. The lower monetary base reflected declines in reserve requirements, monetary bills and Islamic certificates of deposit, and currency issued, partly neutralized by a 50.5% rise in banks' and OFCs' current accounts and overnight deposits at the central bank. Credit growth was led by an AED 18.5 billion increase in domestic credit, with higher lending to the private sector, especially individuals through housing loans and personal consumer loans, and a AED 7.7 billion increase in credit to GREs. Deposit growth came entirely from resident deposits, with private sector deposits up 1.4% and government sector deposits up 4.6%, partly offset by declines in GRE and OFC deposits.