M3 Money Supply

M3 is a measure of money supply that is released by the Central Bank of the United Arab Emirates. It calculates all currency in circulation, bank deposits, repurchase agreements, debt securities for up to 2 years, and the value of money market shares. It is considered an important indicator of inflation, as monetary expansion adds pressure to the exchange rate. Usually, an acceleration of the M3 money is considered positive, or bullish for the AED, whereas a decline is considered negative.