The UAE's monetary base expanded by 1.1 per cent to Dh354 billion ($96.3 billion) during June from Dh350 billion ($95.2 billion) in May mainly due to increases in banks’ required reserves, said a report.

The monetary base expanded by 1.1 per cent to Dh354 billion ($96.3 billion) during June from Dh350 billion ($95.2 billion) in May, reported state news agency Wam citing CBUAE statistics.

The monetary base expanded mainly due to increases in banks’ required reserves, which amounted to Dh125.1 by the end of June from Dh124.4 billion in May.

Certificates of deposits purchased by banks remain constant at Dh125.2 billion, stated the report.

From the end of May to the end of June, the multipliers of M1, M2 and M3 decreased from 1.43 to 1.40, from 3.73 to 3.67 and from 4.40 to4.39, respectively, it added.