The UAE Central Bank withdrew from the local market an excess liquidity of 30.9 billion dirhams during the year 2020 compared to 22 billion dirhams in 2019, according to statistics issued by the bank. / p>
The Central Bank's withdrawal of this liquidity during the past year came as part of its responsibility for managing the monetary policy in the country and directing it in a way that serves the national economy.
and according to the Emirates News Agency, certificates of deposit are one of the tools used by the Central Bank to achieve the goals of monetary policy and manage liquidity in the market, in addition to other tools that contribute in their entirety to Control the movement of liquidity in the UAE.
and the monitoring of the movement of the liquidity management operations index during the past year shows the central bank's resort to injecting liquidity into the market when needed and withdrawing it at other times when it is available in abundance, which appears. It is evident from the increase or decrease in the balance of the certificates of deposit he has over the past period.
It is clear from the statistics issued by the Central Bank that its balance of certificates of deposit amounted to 160.2 billion dirhams in December of 2019, but it witnessed a decline in the first quarter of the year 2020, with a value of approximately 144.6 billion dirhams.
During the second quarter of last year, the balance of certificates of deposit witnessed a significant increase, amounting to approximately 178.5 billion dirhams, before declining in the third quarter of the year to 151.35 billion dirhams. The decline until it closed at approximately 129.3 billion dirhams in the last quarter of the same year.
