Abu Dhabi (WAM) Cash in circulation outside banks increased by 16.5 billion dirhams during the year 2020, raising the total cumulative balance for this item to 94.7 billion dirhams at the end of last December.
Statistics are shown by UAE Central Bank That the cumulative balance of cash in circulation outside banks operating in the UAE grew by 21% during the year 2020 compared to the total balance at the end of 2019.
The increase recorded in cash circulating outside banks is an indication of the availability of liquidity in the local market, through which institutions and individuals alike can pay their obligations.
Cash in circulation outside banks is classified under the “N1” money supply, which is the result of subtracting the issued cash from bank cash plus cash deposits, according to the monetary standards applied by the Central Bank.
Cash circulated outside banks constitutes about 5.3% of the total cash supply in its comprehensive concept (N3), which is worth 1.769 trillion dirhams at the end of December 2020, which includes, in addition to the liquidity circulating outside banks, both government deposits and cash deposits, which in turn include all short-term deposits that customers can withdraw. Without prior notice.
It is noteworthy that the balance of cash in circulation outside banks witnessed a gradual increase throughout the months of 2020, as it rose to 82.2 billion dirhams in the first quarter of the year and then continued to rise until it reached 92.6 billion dirhams in the second quarter of the same year.
During the third quarter of last year, the balance reached 96.7 billion dirhams before returning to stability at 94.7 billion dirhams in the last quarter of the year.