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| 13 August, 2017

Total short-term deposits in UAE banks surge to $120billon in H1 2017

Image used for illustrative purpose. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013.

Image used for illustrative purpose. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013.

REUTERS/Ben Job

ABU DHABI, 13th August, 2017 (WAM) -- Short-term deposits in UAE banks increased by AED27.9 billion during H1, bringing to AED439.7 billion the total value of short-term deposits by the end of June, according to UAE Central Bank statistics.

The term 'Short Term Deposit' refers to an amount of money placed in a bank or financial institution for a term no longer than one year. It will usually earn a fixed rate of interest.

According to Central Bank data, short-term deposits secured progressive growth since the beginning of 2016, with the month of March seeing the highest hike worth AED14.6 billion, ratcheting their total value to AED439 billion from AED424 billion in February, when they were up by AED8.7 billion.

In April, short-term deposits hit an all-time high of AED442 billion, an increase of AED3 billion against the previous month. In May, they declined by AED5 billion before rebounding in June to AED439.7 billion, an increase of AED2.5 billion over the previous month.

Short-term deposits account for 30 percent of total bank deposits in UAE banks, which surged to AED1.46 trillion by the end of H1, according to UAE Central Bank figures.

© Copyright Emirates News Agency (WAM) 2017.