Media ININ Economy We Trust
MediaIn Abu Dhabi, February 13, 2018 and WAM
The Central Bank of UAE (CBE) recorded a record high of AED 135.1 billion at the end of last December, following the withdrawal of excess liquidity of AED 26.9 billion in 2017.
The withdrawal of excess liquidity in banks by the Central Bank to prevent their use in a way that does not serve monetary stability or to provide funding does not contribute to the strengthening of the national economy.
The monitoring of the activity of certificates of deposit shows that the bulk of liquidity available to banks was withdrawn in the last month of 2017 following the central policy of injecting liquidity into the banking system since the beginning of the same year.
The liquidity of the central bank pumped into the market amounted to about 10 billion Dirhams during the months of September and October in a step that was described then that it came to meet the market need of liquidity.
According to statistics issued by the Central Bank, October saw a liquidity injection of 7.9 billion dirhams, while in November it reached 2.1 billion dirhams.
The liquidity injection came after the central bank withdrew liquidity of about 21 billion Dirhams in the third quarter of last year, including 11.3 billion Dirhams during the months of August and September before re-pumping liquidity in the market as of October of the same year.
