6 billion dirhams surplus liquidity withdrawn by the “central” during last March

MEDIA IN, Abu Dhabi, 22 April 2018,
The UAE Central Bank has withdrawn about 6 billion dirhams, which is liquidity from the banking system in the country in March, after pumping liquidity to meet the needs of the market in January and February of this year.
The central bank began to withdraw excess liquidity through an increase in its certificates of deposit, which rose to 134.3 billion dirhams at the end of March compared to 128.3 billion dirhams in February.
The central bank withdraws excess liquidity in the banking system to prevent its use in a way that does not serve the monetary stability or provide funds that do not contribute to the strengthening of the national economy.
The deposit is the tool used by the Central Bank to achieve the objectives of monetary policy and liquidity management in the national economy, along with some other tools to control and rationalize the movement of cash with the banking system in the country.
Since the beginning of this year, the central bank has injected liquidity of 6.8 billion dirhams, a move that followed large withdrawals of liquidity in the fourth quarter of last year.
Statistics from the Central Bank show that its certificates of deposit decreased from 135.1 billion dirhams in December 2017 to 132.4 billion dirhams in January of this year and to 128.3 billion dirhams in February of the same year. These figures reflect the pumping of liquidity before the pumping process In the market during last March, which increased the value of certificates of deposit to 134.3 billion dirhams.
The total liquidity withdrawn by the bank during the year 2017 amounted to about 26.9 billion dirhams