|22 March, 2020

$3.9bln of excess liquidity withdrawn by UAE Central Bank in four months

The move fits within the CBUAE's mandate to direct the country's credit policy

General view of Central Bank of The U.A.E. on January 3, 2017 in Dubai, United Arab Emirates.

General view of Central Bank of The U.A.E. on January 3, 2017 in Dubai, United Arab Emirates.

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ABU DHABI: The Central Bank of the UAE removed AED14.3 billion ($3.9bln) out of excess liquidity in the market in four months, bringing to AED164.1 billion the value of cumulative certificates of deposit at the apex bank by the end of February 2020.

The move fits within the CBUAE'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.

The liquidity withdrawn since November 2019 through February 2020 accounts for 65 per cent of the total cash removed across 2019, which totaled AED22 billion, according to the financial regulator's statistics.

The early months of 2020 saw increased excess liquidity levels, with the total value of certificates of deposits climbing from AED156.3 billion in January to AED164.1 billion by the end of February.

© Copyright Emirates News Agency (WAM) 2020.

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