RIYADH: Total assets held by the Central Bank of UAE rose to $3.95 trillion dirhams ($1.08 trillion) by the end of September 2023, representing a 1.3 percent increase compared to the previous month. According to CBUAE’s statistical monthly bulletin, this growth in assets was complemented by a 1.4 percent rise in the volume of bank credit, which went from 1.95 trillion dirhams at the end of August to 1.98 trillion dirhams at the end of September. CBUAE revealed that the surge in bank credit in September was driven by a significant 7.3 percent surge in foreign credit and a modest 0.7 percent increase in domestic credit. According to the central bank, the domestic credit increase was attributed to a 3.3 percent increase in the public sector, 3.8 percent in non-financial institutions, and a 0.2 percent increase in the private sector. The report added that banking deposits hit 2.42 trillion by the end of September, representing a rise of 0.7 percent compared to August. “The growth in total bank deposits was due to an increase in resident deposits by 1.8 percent, overshadowing the reduction in non-resident by 10.1 percent,” said CBUAE in the report. Additionally, CBUAE said the monetary base expanded by 0.4 percent from 595.1 billion dirhams in August to 597.3 billion dirhams by the end of September. The expansion included a 0.5 percent increase in issued currency and a significant 13.1 percent rise in the reserve account. CBUAE added that the overall money supply indicators also witnessed growth in September. M1, which signifies the most liquid form of money, observed a rise of 2.2 percent to 795.5 billion dirhams in September compared to August, while M2, which includes M1 and also less liquid short-term time deposits, grew by 2.6 percent to 1.90 trillion dirhams during the same period. M3, which comprises M2 and includes less liquid assets and large time deposits, grew by 1.6 percent month-on-month to 2.35 trillion in September. Earlier this month, CBUAE and Bank Indonesia signed a memorandum of understanding aimed at expanding cooperation across various sectors. The MoU entails the extension of the already established framework of cooperation between both central banks, which seeks to strengthen their relationship, enhance information exchange, and collaborate across various areas.