ABU DHABI 25 September 2018: The Central Bank of UAE withdrew Dh11.7 billion out of excess liquidity in the market during August after it met the market needs for cash in July, during which a total of Dh5.2 bn in cash was pumped.
The move fits within the CBUAE’s mandate to direct the country’s credit policy, and to regulate and oversee the monetary and banking policy, ensuring their alignment with the government’s general plan in a way that ultimately strengthens the domestic economy, assures financial stability, regulate cash flows and withdraw cash surplus in order to retain economic resilience.
Recent statistics released by the bank indicated a rise in the total value of certificates of deposits from Dh121bn by end of July to Dh132.7bn by the end of August.
During Q1, the CBUAE withdrew cash amounting to Dh2bn in February, before pumping a total of Dh6bn in March.
During April, up to Dh16bn was injected to market before a total of Dh7bn had been withdrawn in May, during which certificates of deposit hit Dh125.2bn, an amount which remained unchanged in June.
In July, up to Dh4bn was pumped before a considerable amount of cash had been withdrawn in a move that ratcheted up certificates of deposit anew to Dh132.7bn.