Central Bank injects 6.8 billion dirhams into the market in two months

Media In – Abu Dhabi, March 25, 2018
The central bank has returned to inject liquidity into the market since the beginning of this year, at a value of 6.8 billion dirhams during the months of January and February in a move described as to meet the needs of the market of cash, after the resort of the Central Bank to withdraw the surplus in December 2017.
With the return of the Central Bank to inject liquidity, the balance of certificates of deposit decreased to 128.3 billion dirhams at the end of November compared to 135.1 billion dirhams in December of 2017.
The central bank resorted to withdrawing excess liquidity worth 26.9 billion dirhams by the end of 2017, and Homa jumped its balance of certificates of deposit to its highest level in two years.
Usually, 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 in general.
It is evident from the monitoring of the movement of the item recorded in the deposit with the Central Bank of the continuous decline since the beginning of 2018 under the policy of injecting liquidity in the market, which fell from 135.1 billion dirhams in December to 132.4 billion dirhams in January of this year and about 128.3 billion dirhams in February of the same year.
The biggest drawdown of excess liquidity was carried out by the Central Bank in the third quarter of last year and amounted to about 23.8 billion dirhams, of which 15.6 billion dirhams in August and September before re-pumping liquidity in the market since last October.