12.3 billion dirhams surplus liquidity withdrawn by the Central Bank in December

Media in Abu Dhabi – 10 February 2019 /
The liquidity of the Central Bank of UAE (CBE) was AED 12.3 billion during December 2018, reflecting the excess liquidity of the UAE’s banking system.
The central bank’s withdrawal of this large volume of excess liquidity came within the framework of its responsibilities to manage the monetary policy in the market and to serve the sustainability of the growth of the national economy in general.
In addition, the Central Bank’s CBM graph showed a rise of AED 138.16 billion at the end of December 2018 compared to AED 125.83 billion in November of the same year.
Certificates of deposit are one of the tools used by the Central Bank to achieve the objectives of monetary policy and management of liquidity in the market, in addition to other tools contribute mostly to control the movement of cash and serve the national economy.
It is clear from the Central Bank figures that the liquidity of its management is different. During the first quarter of last year it was noticed that there was a large cash flow in the banks, which led the central bank to withdraw the surplus before returning during the second quarter of the year to the injection process in the market.
At the beginning of the third quarter of last year, the central bank withdrew a portion of the liquidity, reducing the balance of certificates of deposit to 121 billion dirhams, but returned to the process of withdrawing the surplus after that, specifically during the month of August, which raised the balance to 132.71 billion dirhams, while The September record pumped more than 11 billion dirhams.
During the fourth quarter of last year, the withdrawal of excess liquidity from the market dominated the movement of the Central Bank, which raised the balance of certificates of deposit to the level of 138.16 billion dirhams