Foreign currency deposits in UAE banks up 7.3% in eight months

These account for 30% of the total deposits held by the Emirati banks

  
Image used for illustrative purpose. A customer makes a transaction at a bank in Dubai.

Image used for illustrative purpose. A customer makes a transaction at a bank in Dubai.

REUTERS/Mohammed Salem

ABU DHABI - The total foreign currency deposits held by the UAE national banks amounted to circa AED409 bn by August, a growth of 7.3 percent, according to the statistics of the Central Bank of the United Arab Emirates.

These account for 30 percent of the total deposits held by the Emirati banks, valued at AED1.346 trillion by the end of August. They grew to AED366.8 bn in Q2 from AED381 bn in December 2019, before rising to around AED395 bn in July.

The foreign deposits held by all national banks in the UAE comprise around 40 percent of deposits of all terms; account for 12.6 percent of saving deposits and 24.3 percent of demand deposits.

They represent around 81.3 percent of total foreign deposits held by all banks operating in the UAE, according to the statistics.

Fixed deposits are one of the safest and most preferred investment options available to those averse to investing in risk instruments such as equity and mutual funds. FDs allow investors to manage r financial risks, therefore representing an effective tool to enhance foreign direct investments.

© WAM (Emirates News Agency) 2020

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