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Abu Dhabi / WAM
The UAE central bank withdrew AED3.1 billion in excess liquidity during August, bringing the total withdrawals to AED11.3 billion in two months. The apex bank said the move is part of its continuing efforts to manage excess liquidity in the banking system.
The UAE central bank withdrew AED8.2 billion of excess liquidity during July, which resulted in the surge of Certificate of Deposit (CD), accounts to AED111.1 billion, before they rebounded last month to AED114.4 billion, as compared to AED102.8 billion in June.
Banking analysts said the central bank’s continuation of the surplus liquidity withdrawal aims to control it in a manner that contributes to stimulating economic growth and maintaining monetary stability in the state. The central bank has been withdrawing excess liquidity since the beginning of year, before pumping it in May and June and then withdrawing it again in July and August. Figures showed that total liquidity pumped by Central Bank into banking system in 2016 reached AED31.6 billion.