The UAE Central Bank balance of certificates of deposit increased to 194.33 billion dirhams at the end of last May.
According to the Emirates News Agency, the amount of surplus liquidity that the Central Bank withdrew from the market amounted to about 34.15 billion dirhams during the first five months of the year 2020.
The large increase in liquidity withdrawn reflects the continuation of the central bank in its policy aimed at controlling the volume of liquidity in the market and directing it in a way that serves the national economy.
Deposits are one of the monetary policy management tools that the central bank uses to control the movement of liquidity with the banking system, in addition to other tools.
The historical data of the Central Bank show that the value of surplus liquidity that was withdrawn from the market during the period from January to the end of May of the year 2020 is 55.2% higher than the total liquidity value Which he withdrew throughout the year 2019, amounting to 22 billion dirhams.
It is clear from the statistics issued by the Central Bank that the pace of withdrawing excess liquidity from the market continued with the beginning of the current year, where the balance of certificates of deposit rose to approximately 164 billion dirhams within a month February, compared to 156.26 billion dirhams in the same month of April.
During the month of March, the balance of certificates of deposit fell to 144.58 billion dirhams, before it jumped to the level of 198.77 billion dirhams in April, and then stabilized at 194.33 billion dirhams in May.
It is noteworthy that banks were in possession of large liquidity during the past period, but the balance of its liquidity is strengthened after the facilities of the comprehensive economic support plan announced by the Central Bank earlier in the amount of 50 billion Dirhams, and 26 banks benefited from it, as it withdrew 44 billion dirhams from the total amount, according to the latest statistics issued by the Central Bank.
