US dol­lar is still the best choice: UAE cbank

The Pak Banker - - Front Page -

ABU DHABI: The US dol­lar is still the best choice for the global econ­omy, United Arab Emi­rates (UAE) Cen­tral Bank Gover­nor Sul­tan Bin Nasser Al Suwaidi said here Mon­day.

Talk­ing to me­di­a­per­sons be­fore the open­ing of the Gulf Co­op­er­a­tion Coun­cil (GCC) sum­mit, Al Suwaidi said: "What are the choices. There is yen and euro. The choice is limited. The US dol­lar is still the best choice."

He said that more than 60 per­cent of the UAE econ­omy deal­ings, di­rectly or in­di­rectly, was in US dol­lars. He was re­spond­ing to a query on coun­tries look­ing for an al­ter­na­tive to the US cur­rency as a bench­mark for the world econ­omy.

The cen­tral bank's top of­fi­cial said that there are 24 na­tional banks, 23 for­eign banks and six GCC banks op­er­at­ing in the UAE. Be­sides that there are 96 rep­re­sen­ta­tive of­fices and 45 in­vest­ment com­pa­nies. "UAE's bank­ing sec­tor is con­tin­u­ing to grow."

UAE's to­tal bank­ing as­sets are 1.6 tril­lion Dhms and is one of the biggest bank­ing sys­tems in the Arab world. The cap­i­tal and rev­enues is 250 bil­lion Dhms. To a query, Al Suwaidi said: "The sit­u­a­tion is much more pos­i­tive this year. Things were not clear last year...There is con­fi­dence in the UAE bank­ing sys­tem."

On Qatar get­ting to host the FIFA World Cup 2022 and its im­pact on the re­gional econ­omy, he said that they don't make pro­jec­tions over more than three years. "Twelve years is too long a pe­riod".

Speak­ing on Iran, the top bank­ing of­fi­cial said: "We abide by the UN Se­cu­rity Coun­cil res­o­lu­tion. UAE has a good track record of abid­ing by the res­o­lu­tion."

Re­fer­ring to the 2008 world eco­nomic cri­sis, Al Suwaidi said: "When you get into a cri­sis, you are into it - like it or not... Suf­fer­ing takes place." "We pro­vided suf­fi­cient sup­port and we are now far away from that point of time. Oc­to­ber 2010 fig­ures show an in­creased cus­tomer de­posit." He stressed that they over­see the bank­ing sec­tor's sys­temic risk and "we will pro­tect our banks from over ex­po­sure". -PB News

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