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BUSINESS PACE PICKS UP

Image courtesy: WAM

UAE cbank pumps $3.8 billion liquidity in April

ABU DHABI, May 28, 2018

A total of Dh14 billion ($3.8 billion) in cash has been pumped onto the market by UAE’s Central Bank (CBUAE) in April, the highest liquidity injected by the country's primary financial regulator since the beginning of the year, a media report said.

The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics.

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.

Re-injecting 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 Dh132.4 billion in January from Dh135.1 billion in December 2017.

In February, CBUAE re-injected Dh14 billion in cash to the market, bringing the total value of certificates of deposit to Dh118.3 billion.

By the end of 2017, CBUAE withdrew Dh26.9 billion in surplus liquidity, bringing the value of certificates of deposit to a two-year high.




Tags: liquidity | CBUAE | UAE central bank |

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