ABU DHABI - Banks operating in the UAE have increased their investments in bonds since the beginning of 2019 to make for losses caused by a fall in proceeds from their other investment instruments, including loans.

The value of investments in bonds by banks during the first eight months of 2019 amounted to AED10.3 billion, which increased their total investments to AED91.2 billion at the end of August, a growth of 12.7 percent compared to the same period in 2018.

The UAE Central Bank cut its key interest rate in August for the second time in 2019, in response to a similar move by the United States Federal Reserve.

At the end of August, the balance of the banks investments in bonds to maturity accounted for around 23.7 percent of the total value of their investments in all investment products, amounting to AED384.3 billion, according to statistics issued by the UAE Central Bank.

The banking sector's appetite for this investment instrument raised the value of their total investments to AED89.7 billion at the end of March this year, compared to AED81.2 billion in December 2018. Total balance jumped to AED91.5 billion in August of the same year.

Copyright Emirates News Agency (WAM) 2019.