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UAE Central Bank withdraws $2.2bn of surplus liquidity

UAE Central Bank withdraws $2.2bn of surplus liquidity

DUBAI: The UAE Central Bank has withdrawn Dh8.2 billion ($2.2 billion) out of excess liquidity in the market during July after it pumped Dh11.3 billion in June, a report said. 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, reported Emirates news agency Wam.

Recent statistics released by the bank indicated a rise in the total value of certificates of deposits from Dh102.8 billion to Dh111 billion by the end of July. 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. Back to the first quarter of the year, the Central Bank pumped cash amounting to Dh7.1 billion, withdrawing part of it in April and May, before providing anew a total of Dh11.3 billion in June. As per official statistics, the total value of cash provided during 2016 stood at Dh31.6 billion to fulfill market needs.