ABU DHABI - The value of the liquidity withdrawn by the Central Bank of the UAE, CBUAE, from the market in 2019 totalled AED22 billion, highlighting the surplus liquidity in the UAE’s banking system.
The CBUAE manages the country’s monetary policy to serve the national economy in general, through a variety of instruments. Certificates of Deposit (CDs) represent one of the CBUAE's tools for enforcing its monetary policy and managing liquidity in the market. Statistics from the apex bank show that the total balance of CDs increased to AED160.2 billion in 2019, a rise of 15.9 percent compared to AED138.2 billion in 2018. The figures also show that the first quarter of 2019 witnessed an increase in the balance of CDs held by the bank to around AED139.2 billion while in the second quarter of the same year, this amount was AED155.8 billion. In the third quarter of last year, the bank pumped liquidity into the market, which led the balance to slightly drop to AED153.8 billion, before surging again in the fourth quarter to AED160.2 billion.
© Copyright Emirates News Agency (WAM) 2020.