An increase of 8 billion dirhams in cash circulated outside Emirati banks in the first quarter

According to the Emirates News Agency, the total cumulative balance for this item increased to the level of 86.2 billion dirhams at the end of last March.

The continuous increase in the volume of cash circulating outside the banking system reflects the speed of the Central Bank's response to meet the liquidity needs of individuals and institutions in order to pay obligations and spend on the requirements of daily life.

According to financial standards, cash in circulation outside the banks is one of the elements that make up the money supply / N1 /, which also includes, issued cash and cash in banks in addition to cash deposits.

The indicator on the movement of liquidity that is traded outside the banks maintains an upward trajectory during the last period, as the cumulative balance increased to 78.2 in December of 2019 to 80.8 billion dirhams in January of the year 2020.

The liquidity index continued to rise during February of this year until the total balance reached 82.5 billion dirhams, according to statistics from the Emirates Central Bank, and continued to grow until it reached the level recorded in the month of March.

According to the data on liquidity movement, it is expected that the volume of cash in circulation outside the banks will continue to grow during the past months and in a manner that matches the need of institutions and individuals for liquidity.