UAE Central Bank’s balance of deposit certificates rises to AED155.8 billion in June 2019

ABU DHABI, The balance of the UAE Central Bank’s deposit certificates rose to record levels during the first half of 2019, reaching around AED155.8 billion at the end of June, according to statistics issued by the bank highlighting its policy of withdrawing surplus liquidity.

The value of surplus liquidity withdrawn in June amounted to around AED8.8 billion.

The UAE Central Bank withdrew surplus liquidity in the market during the first three months of the current year, 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The bank’s statistics show that the value of liquidity withdrawn since the start of 2019 until the end of February amounted to around AED8 billion before it reversed this policy in March, when its balance of deposit certificates amounted to approximately AED139.2 billion.

In April 2019, the bank again began to withdraw liquidity, which continued in May and June.

Deposit certificates are used by the bank to achieve its monetary policy goals and manage liquidity in the market, in addition to other tools for controlling monetary movement and serving the national economy.

Source: Emirates News Agency