UAE government deposits in the banking sector jumped by 18.8 per cent year-on-year to AED185.3 billion at the end of March.
In March 2014, government deposits stood at AED156bn; they were at AED190bn at the end of 2013.
According to data released by the country’s central bank, local banks attracted an additional AED29.3bn in government deposits.
In March alone, the government injected AED100 million in deposits, according to the figures published by Al Bayan.
The data indicates a significant surge in government deposits, which suffered a drop of 5.8 per cent or AED11bn in January.
Furthermore, the country’s monetary base edged down by 4.71 per cent or AED14.5bn in the first quarter of this year to AED293bn from AED308bn at the end of 2014.
Money in circulation also suffered a drop of AED5.1bn in the same period to stand at AED69.4bn at the end of February, from AED74.5bn at the end of 2014.
The value of short-term deposits, which clients can withdraw without prior notification, jumped to AED400.7bn, up by AED23.6bn compared with AED377.1bn at the end of 2014.