A financial expert ascribes him to stability, state guarantee of deposits and dealers' confidence

"The Dirham" acquires 70% of bank deposits in the UAE

Al-Markazi: Dealers prefer the local currency for all types of bank deposits.

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The latest data issued by the Central Bank showed that the local currency (dirham) has acquired the largest share of bank deposits, by 70%, equivalent to one trillion and 60 billion dirhams, out of the total deposits of one trillion and 522 billion dirhams, while foreign currencies acquired the remaining share.

The data stated that dealers have a preference for the local currency in all types of bank deposits, to acquire 73% of demand deposits, 84% of savings deposits, and 62% of time deposits.

The financial and accounting expert, Dr. Muhammad Maher, said that the policy of pegging the dirham to the dollar has gained the local currency of the UAE strength and stability over the past years, which has created a state of reassurance for all nationalities who live here that accompanies their keeping their money in the dirham, pointing out that this does not prevent the existence of Other currencies, but with a smaller share.

Maher added that all commercial transactions within the country are carried out in dirhams, and financial budgets are prepared in dirhams, whether the company is local or foreign operating in the country.

He continued: “All bank guarantees for companies are placed in the dirham, which is basically the prevailing currency by law, in addition to what distinguishes the dirham is that it is stable, at a time when the state guarantees all deposits, especially those in its local currency, so there is a demand for dealers and companies to deposit in the currency of the dirham. ».

Maher emphasized that the strength of the economy usually supports the local currency, which is evident in the UAE, whose economy enjoys diversity and openness, which made it a regional center for trade, export and re-export, indicating that the largest proportion of goods and goods destined for the Gulf region pass through the ports of the UAE. First, it is then re-exported, which is another reason for the strength of the local currency.

Maher pointed out that the dirham remained the most attractive currency for deposits, whether individuals or companies, during the months of the pandemic, especially with the high interest rate against other currencies.

100 million dirhams facilities for small projects within 3 months

The value of the financial facilities provided by banks operating in the country to small and medium enterprises reached 100 million dirhams during the third quarter of this year, according to statistics issued by the Central Bank.

With the return of banks to provide financing to small and medium enterprises during the third quarter of 2020, the total cumulative balance of this type of facilities reached 92.6 billion dirhams at the end of last September, compared to 92.5 billion dirhams in June of the same year.

The balance of facilities for small and medium enterprises witnessed the completion of some adjustments, after a number of them paid the obligations placed on them in the period following the first quarter of this year, before banks returned again to provide facilities for these projects in the third quarter of the year.

Abu Dhabi - WAM

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