AED7.3 bn Injected by the UAE Central Bank during March

Media IN Abu-Dhabi, 15th May, 2019 (WAM)

In abid to boost liquidity, and compensate banks of funds withdrawn out of excess liquidity in the market, the Central Bank of UAE has injected AED 7.3 billion cash to the financial system for the month of march.

This was aimed at regulating and overseeing the monetary and banking policy, ensuring their alignment with government’s general  plan in a way that ultimately strengthens the domestic economy, assures financial stability, regulate cash flows and withdraw cash surplus in order to retain economic resilience as the move fits within the CBUAE’s mandate to direct the country’s credit policy.

Reinjecting more liquidity over the coming period will generate more business momentum, according to analysts.

According to CBUAE figures, the certificates of deposit dropped to AED139.2 bn by the end of March from AED146.5 bn the month earlier.

Over the first two months 0f 2019, a total of AED8.00 bn in cash has been withdrawn from the market after AED12.4 bn was withdrawn in excess liquidity in December 2018.