At its highest value ever

11.5 trillion dirhams of financial transfers in the banking sector within 11 months

  • The UAE “central” system for money transfers is considered the most stringent and strict in the region.

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  • Ahmed Youssef: “(The Central Bank) does not allow any unofficial transfers, in order to ensure transparency, and to preserve the reputation of the state and protect its gains.”

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Remittances in the banking sector, which were implemented through the Central Bank's system for remittances during the first 11 months of last year, amounted to 11.5 trillion dirhams.

This is the highest value ever in the history of the banking sector in the UAE.

These transfers were distributed, according to data issued by the Central Bank yesterday, between seven trillion and 39 billion dirhams related to bank transfers, and four trillion and 450 billion dirhams in customer transfers.

Remittance system

The Central Bank system for money transfers is the most stringent and stringent in the region, as it follows the best controls and standards in force globally, to ensure the passage of all funds that are dealt with through it, which guarantees transparency in dealing with funds and confronts attempts to money laundering, whether transactions take place in banks or exchange offices. Or even through the “hawala dar” system, where these parties must submit to registration with the Central Bank, supervision by it, and adhere to its instructions.

During the first 11 months of 2022, remittances in the banking sector witnessed a steady growth, but it reached its peak during November, which recorded a proceeds of 1.2 trillion dirhams.

Investments and financing

According to the data, the total investments of banks, at the end of last November, amounted to 511 billion dirhams, compared to 473 billion dirhams at the end of December 2021, an increase of 38 billion dirhams, equivalent to a growth of 8% during the monitoring period.

Individual financing, at the end of last November, amounted to 375.1 billion dirhams, compared to 347.6 billion dirhams at the end of December 2021, an increase of 27.5 billion dirhams, equivalent to a growth of 7.9%.

At the end of last November, the financing of the commercial and industrial sectors in the country recorded 808 billion dirhams, compared to 773 billion dirhams at the end of December 2021, an increase in 11 months of 35 billion dirhams and a growth of 4.5%.

trust

Commenting, the banking expert, Ahmed Youssef, told Emirates Today, "The large increase in the volume of financial transfers, which take place through the central bank system, reflects confidence in the national economy and the laws regulating the movement of money, which gives reassurance to investors and residents, as we do not find transfers." Or transactions outside the (central) system, in addition to the transparency, laws and controls set by the latter, all are in the interest of the legality of financial transactions, and ensuring their smooth flow in a manner that suits the reputation of the UAE and its position as a global financial and commercial center at the present time.

Liquidity

Youssef added, "Also, the volume of liquidity in the banking sector is large, as well as the cash circulating in the market, so it is natural for the movement of remittances to witness growth, in addition to an increase in the number of residents and an increase in employment, which means a parallel increase in remittances of state workers to their home countries."

He pointed out that "the money flowing to the UAE in the form of direct investments is also an important factor in increasing financial transfers through the central bank system."

transparency

Youssef stressed that "the Central Bank is strict and does not allow any unofficial transfers, in order to ensure transparency, and to preserve the reputation of the state and protect its gains," noting that laws and legislation related to financial transfers have been updated and reviewed by the "Central", to suit and support economic performance at the same time. , which makes individuals and institutions inside and outside the country trust the Emirati “central” system.

checks

Data issued by the Central Bank showed that the value of checks that were dealt with during the first 11 months of last year amounted to 1.12 trillion dirhams for 20 million checks, while cash withdrawals amounted to 106.5 billion dirhams, offset by deposits of 177.1 billion dirhams.

• 511 billion dirhams total investments of banks at the end of last November.

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