426 billion dirhams of foreign assets owned by the Central Bank

8% growth in cash deposits to 623.5 billion dirhams

According to data issued by the Central Bank, yesterday, that cash deposits rose to 623.5 billion dirhams last October, an increase on an annual basis by 8%, or the equivalent of 46.1 billion dirhams, compared to 577.4 billion dirhams in October 2021, pointing out that government deposits increased. About 27 billion dirhams, during the month of October alone, to reach 429.4 billion dirhams by the end.

She indicated that the Central Bank owns foreign assets worth 426 billion dirhams, as of the end of last October, compared to 424 billion at the end of the previous September, with a monthly increase of two billion dirhams.

In detail, the Central Bank said that it owns foreign assets worth 426 billion dirhams, as of the end of last October, compared to 424 billion at the end of the previous September, with a monthly increase of two billion dirhams, according to data issued yesterday by the Central Bank.

The data indicated that these assets are distributed among bank balances and deposits with banks abroad at a value of 246.2 billion dirhams, foreign securities held to maturity at a value of 121.5 billion dirhams, and other foreign assets at a value of 58.12 billion dirhams.

According to the data, government deposits increased by 27 billion dirhams, during the month of October alone, to reach 429.4 billion dirhams by the end, compared to 402.5 billion at the end of the previous September.

A banking official told Emirates Al-Youm, who preferred not to be named, that "the large foreign assets owned by the Central Bank enhance the strength of the UAE dirham, so the dirham remains strong with the support of these assets, which in essence constitute reserves, some of which can be liquefied and withdrawn immediately when needed." Such as balances, deposits and current accounts, and this constitutes the largest percentage of the (Central) foreign assets, and the remaining percentage constitutes investments in bonds or guaranteed government treasury bills with attractive returns and low risks and has a strong sovereign rating of no less than (A+++).

He added, "These reserves also constitute a wall against the UAE's economy, and are used in foreign financial transactions, and at the same time reflect the strength of the state's financial position."

He pointed out that “government deposits are also an important source for the stability of the banking sector, and banks rely on them to expand lending and finance various economic sectors.” Fees, services, and more.

He emphasized that the solvency of UAE banks and the strength of the financial sector in general enhance the UAE's classification in the global financial community, and raise the confidence of both local and foreign investors in the country's markets.

According to the data, cash in circulation outside banks increased at the end of October, reaching 99.6 billion dirhams, compared to 98 billion at the end of the previous September, while cash in banks declined to 16.1 billion dirhams, compared to 17.1 billion during the comparison period.

The country's monetary base at the end of October recorded 468.8 billion dirhams, compared to 466.5 billion dirhams at the end of September, an increase of 2.3 billion dirhams.

Cash deposits decreased, during last October, slightly, to reach 623.5 billion dirhams, compared to 625 billion at the end of September, with a monthly decline of 1.5 billion dirhams, but it increased on an annual basis by 8%, or the equivalent of 46.1 billion dirhams, compared to 577.4 billion dirhams in October 2021. Semi-cash deposits also rose to 906.3 billion dirhams last October, with an annual growth rate of 9.6%, compared to 826.7 billion dirhams in October 2021, an increase of 79.6 billion dirhams.

• 27 billion dirhams increase in government deposits within a month.

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