Dubai 28 May 2018: A total of AED14 billion in cash has been pumped onto the market by the Central Bank in April, the highest liquidity injected by the country’s primary financial regulator since the beginning of the year, according to official statistics.
The move resulted in reducing the value of CBUAE’s certificates of deposit to AED118.3 billion from AED134.3 billion in March.
The fall in liquidity held by UAE banks over recent period has been attributed by industry analysts to tightened lending measures in addition to other arrangements adopted by CBUAE to ensure the smooth operation of the country’s financial landscape.
Reinjecting more liquidity over the coming period will generate more business momentum, according to banking experts.
According to CBUAE figures, the certificates of deposit dropped to AED132.4 billion in January from AED135.1 billion in December 2017.
In February, CBUAE reinjected AED14 billion in cash to the market, bringing the total value of certificates of deposit to AED118.3 billion.
By the end of 2017, CBUAE withdrew AED26.9 billion in surplus liquidity, bringing the value of certificates of deposit to a two-year high.