Central Bank of UAE/Supplied
The surplus liquidity withdrawn in June amounted to around AED 8.8 billion.
Tuesday 30, July 2019 BY KUDAKWASHE MUZORIWA
The Central Bank of UAE’s (CBUAE) said that its balance of the deposit certificates rose in H1 2019, reaching around AED 155.8 billion according to the central bank’s statistics which highlights its policy of withdrawing surplus liquidity, according to local newswire, WAM.
CBUAE withdrew surplus liquidity in the market in Q1 2019, due to the high level of surplus liquidity in the country’s banking system.
The bank usually withdraws liquidity to prevent banks from investing them in ways that do not align with the country’s monetary policy, which it applies to serve the national economy.
The central bank’s statistics show that the value of liquidity withdrawn since the start of 2019 until the end of February amounted to around AED 8 billion before it reversed this policy in March when its balance of deposit certificates amounted to approximately AED 139.2 billion.