According to the Emirates News Agency, the Central Bank's resort to pumping liquidity into the market last March contributed to the decrease in its cumulative balance of deposit certificates to about 144.6 billion dirhams, compared to 164 billion dirhams during the previous month of February.
Deposit certificates are classified according to international monetary standards as one of the tools used by central banks to achieve the objectives of their monetary policy, in addition to other tools that contribute in their entirety to controlling the movement of cash in the market and in a manner consistent with the efforts of countries in support of their overall economy.
It is clear from monitoring for the central bank inventory movement index of certificates of deposit that the total value of the balance decreased to approximately 156.3 billion dirhams in January of this year compared to 160.2 billion dirhams in December of the year 2019.
It is noteworthy that the central bank’s behavior in managing liquidity during the past year showed its withdrawal of about 22 billion dirhams from excess liquidity in the market, which was evident by the increase in the total cumulative balance of deposit certificates to 160.2 billion dirhams in December 2019 compared to 138.2 billion dirhams in the same month. From the year 2018.
