According to the bank M3 money supply, the broadest measure of all the cash in the economy, was AED925.9bn ($252.1bn) in the second quarter, compared with AED815.5bn during the same period in 2008.

Economists use money supply as an indicator of future inflation. The UAE’s money supply increased by 28 per cent during 2008.

The central bank figures also showed that total assets of the UAE banking sector fell to AED1,489bn at the end of June 2009, from AED1,498bn at the end of May.