ABU DHABI 23 April 2018: The UAE Central Bank has withdrawn Dh6 billion of excess liquidity in the market during March after it met the market needs for cash in January and February.
The total value of liquidity withdrawn by the bank during 2017 amounted to Dh26.9 billion.
Banking analysts view that UAE banks resuming their loans and credit facilities to different sectors across the country has necessitated a move by the Central Bank to regulate the cash flows and withdraw the cash surplus in order to retain economic resilience.
Statistics released by the bank also indicated a rise in the total value of certificates of deposits from Dh128.3 billion in February to Dh134.3 billion by the end of March, said Wam.
The move fits within the Central Bank’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 and assures financial stability.
First Quarter
Back to the first quarter of the year, the Central Bank pumped cash amounting to Dh6.8 billion until the end of February, after withdrawing a considerable amount of funds during Q4 2017.
As per official statistics, the total value of certificates of deposit fell from Dh135.1 billion in December 2017 to Dh132.4 billion in January 2018 and to Dh128.3 billion in February, before rebounding to Dh134.3 billion in March.