UAE banks’ re­serves up 7% in Q1

Khaleej Times - - BUSINESS -

abu dhabi — In yet a fresh sign of the coun­try’s ro­bust fi­nan­cial in­fra­struc­ture, the UAE banks’ re­serve re­quire­ments picked up 7.7 per cent dur­ing first quar­ter of 2020 to Dh132.6 bil­lion as com­pared to the cor­re­spond­ing pe­riod in 2019, statis­tics by the Cen­tral Bank of the UAE have shown.

Ac­cord­ing to a CBUAE re­port, the re­quired re­serves have been steadily grow­ing over the re­cent months. In De­cem­ber 2019, they increased to Dh129.7 bil­lion from Dh126.2 bil­lion in Septem­ber same year.

In Jan­uary 2020, the re­quired re­serves climbed to Dh130.8 bil­lion, edg­ing down to Dh130.1 bil­lion in Fe­bru­ary, be­fore re­bound­ing to Dh132.6 bil­lion in March. Ear­lier this month the CBUAE re­duced banks’ re­serve re­quire­ments for de­mand de­posits by 50 per cent to sup­port the coun­try’s econ­omy dur­ing the Covid-19 pan­demic. This will in­ject liq­uid­ity of about Dh61 bil­lion, which can be used to sup­port banks’ lend­ing to the UAE econ­omy and their liq­uid­ity man­age­ment. The CBUAE has fur­ther ex­tended the du­ra­tion of the Tar­geted Eco­nomic Sup­port Scheme (TESS), for af­fected re­tail and cor­po­rate cus­tomers.

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