The surplus liquidity with banks in the country recorded, last December, 10.4 billion dirhams, which it invested in certificates of deposit with the central bank in exchange for interest.
And data released by the «Central» yesterday, revealed that the balance of the certificates of deposit owned by banks, against which liquidity is held with the Central Bank, reached at the end of last December 160.2 billion dirhams, compared to 149.8 billion at the end of last November, with a monthly growth of 6.9%.
The certificates of deposit are considered one of the liquidity management tools provided by the “Central” and allowed banks to buy and invest in them in exchange for interest in times of abundant liquidity, or to liquidate them when needed.
Banks resort to investing certificates of deposit issued by the Central Bank, as they are the best and most secure of any other investment tools, in addition to being the appropriate investment vessel for moving liquidity, in light of the banks 'hedging departments' hedges against ill-considered lending.
In addition, the state’s monetary base at the end of last year recorded 409.5 billion dirhams, compared to 405 billion at the end of November 2019, an increase of 4.5 billion dirhams during December 2019.
Central Bank data showed that the total foreign assets held by it at the end of last December amounted to 394.7 billion dirhams, compared to 393 billion dirhams at the end of November, which was preceded by a monthly increase of 1.7 billion dirhams.
The total reserves stipulated by the Central Bank at the end of December increased to 129.7 billion dirhams, compared to 127.5 billion dirhams at the end of November 2019, with a monthly increase of 2.2 billion dirhams.
Government deposits increased by the end of December to reach 305.9 billion dirhams, compared to 301.8 billion dirhams at the end of last November, an increase of 4.1 billion dirhams during the month.
The cash issued in the country at the end of December was 93.7 billion dirhams, compared to 94.8 billion dirhams at the end of November, a decrease of 1.1 billion dirhams.
Sustainable financing
The Central Bank stated, in a statement yesterday, that it joined with a group of financial institutions in the country to issue guidelines for sustainable financing in the country, with the aim of contributing to the adoption and implementation of sustainable financing priorities locally, within the activities of the second session of the Abu Dhabi Forum for Sustainable Finance.
Deputy Governor of the Central Bank, Saif Hadef Al Shamsi, said that the Central Bank’s participation comes within the framework of supporting and enhancing sustainability efforts in the UAE, confirming the bank’s efforts to support financing initiatives to achieve sustainable growth.
- 409.5
Billions of dirhams are the monetary base of the country by the end of 2019.
Banks resort to investing certificates of deposit issued by the «Central», being the best and most secure.
Government deposits
It increased by the end of December to reach 305.9 billion dirhams.